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--- using-offtoa:assumptions:financial-assumptions:investments [2016/05/28 15:53]
mdavis
+++ using-offtoa:assumptions:financial-assumptions:investments [2016/09/19 13:00] (current)
@@ Line 32: / Line 32: @@
   - Price per Share. You are selling a part of your company. This assumption defines the price at which you plan to sell each share of the company. See the answer to the question "What should my price per share be?" below.
   - Class. Are you planning on selling common or preferred stock? See the answer to the questions "What is common vs. preferred? Which should I offer investors?" below.
-  - Liquidation Rights Multiple. If preferred stock, what multiple of their purchase price will investors receive upon a liquidity event prior to general distribution of the remaining funds to all shareholders? According to Wasserman's Founder's Dilemmas, Series A investors in 78% of all start-ups that raised external investments had a liquidation multiple of 1; 9% had a liquidation multiple of 1.1 to 2; 5% had a liquidation multiple of 2.1 to 3; and 8% had a liquidation multiple of greater than 3.
+  - Liquidation Rights Multiple. If preferred stock, what multiple of their purchase price will investors receive upon a liquidity event prior to general distribution of the remaining funds to all shareholders? According to Wasserman's __Founder's Dilemmas__, Series A investors in 78% of all start-ups that raised external investments had a liquidation multiple of 1; 9% had a liquidation multiple of 1.1 to 2; 5% had a liquidation multiple of 2.1 to 3; and 8% had a liquidation multiple of greater than 3.
 ==== Third Tab on this Page: Options ====
@@ Line 47: / Line 47: @@
     - If twice as many options are distributed than the desired size of the option pool, then double the economic value. If half as many options are distributed than you want to distribute, then halve the economic value, etc.
   - Annual increase in stock option value. In the previous assumption, you set the first year's value of a stock option. At what rate do you expect this to increase in subsequent years? If you expect the company to double its value each year, then you might set this to 100%. If you expect the company to triple its value each year, then you might set this to 200%. Note the effect of setting this to, say, 100%, and set employee expectations accordingly: An employee being awarded 25,000 stock options one year should expect to be awarded 12,500 stock options the following year, and it would be an equivalent award.
-  - Option pool size. Select the option pool size you want based on your management philosophy. For example, if your founders are purchasing 1,000,000 shares and you want your employees and founders to 50/50 partners, then create an option pool with 1,000,000 shares.\\
+  - Option pool size. Select the option pool size you want based on your management philosophy. For example, if your founders are purchasing 1,000,000 shares and you want your employees and founders to be 50/50 partners, then create an option pool with 1,000,000 shares.\\
 The remaining four fields describe some uses for the option pool other than rewarding of employees:\\
   - How many board members. How many members do you expect to have on your board of directors?
@@ Line 66: / Line 66: @@
 **[[https://www.offtoa.com/wp/?p=247/|How does a start up company get money?]]**
-**[[:faqs:why-founders|Why do I need a founders' round?]]**
+**[[:faqs:investments:why-founders|Why do I need a founders' round?]]**
 **[[https://www.offtoa.com/wp/much-money-ask-investment/|How much money should I ask for from investors?]]**
-**[[:faqs:invest-timing|What is the right timing for investment rounds?]]**
+**[[:faqs:investments:invest-timing|What is the right timing for investment rounds?]]**
-**[[:faqs:price-per-share|What should my price per share be?]]**
+**[[:faqs:investments:price-per-share|What should my price per share be?]]**
-**[[:faqs:common-or-preferred|Should I offer investors common or preferred shares?]]**
+**[[:faqs:investments:common-or-preferred|Should I offer common or preferred shares to investors?]]**
-**[[:faqs:founders-reinvest|Can founders invest in the company after the founder's round?]]**
+**[[:faqs:investments:founders-reinvest|Can founders invest in the company after the founder's round?]]**
-**[[:faqs:inkind-investments|How do I handle in-kind investments?]]**
+**[[:faqs:investments:inkind-investments|How do I handle in-kind investments?]]**
+**[[:faqs:investments:invest-payoff-loan|Can I pay off a loan with an investment round?]]**
+**[[:faqs:investments:warrant|What is a warrant?]]**
+**[[:faqs:investments:how-warrant|How to create a warrant in Offtoa?]]**
 **[[http://www.linkedin.com/pulse/startup-loan-investment-alan-al-davis|Should I get a loan or ask for investments?]]**
@@ Line 86: / Line 92: @@
 **[[http://www.linkedin.com/pulse/20141104152956-79891538-accounting-for-kickstarter-in-startups|How do I account for funds from Kickstarter?]]**
-**[[:faqs:items-per-page/|How do I get more investments to display on each page?]]**
+**[[:faqs:investments:items-per-page/|How do I get more investments to display on each page?]]**

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