How does the 409a valuation compare to the actual valuation in terms of capital raising?
-
-
Answer:
The value indicated in your 409A valuation is likely lower than the value indicated in a financing, especially if the financing involved a preferred or note (with cap). It's because the 409A valuation distinguishes the differences between Common vs Preferred (note), which often is not the case when the term "pre-money" or "post-money" were mentioned during the actual financing. But both the investor and the owner should know that if the Preferred shareholders have more liquidation rights, participation rights, etc, it will all be dilutive to Common.
Il Hong Yoo at Quora Visit the source
Related Q & A:
- How to detect compatibility mode in IE and actual version?Best solution by social.msdn.microsoft.com
- How do I change my avatar to an actual picture of myself?Best solution by Meta Stack Overflow
- How do I get a waitress job without actual experience?Best solution by Yahoo! Answers
- How do I insert a picture into an actual mail message?Best solution by Yahoo! Answers
- How do terms work in college?Best solution by talk.collegeconfidential.com
Just Added Q & A:
- How many active mobile subscribers are there in China?Best solution by Quora
- How to find the right vacation?Best solution by bookit.com
- How To Make Your Own Primer?Best solution by thekrazycouponlady.com
- How do you get the domain & range?Best solution by ChaCha
- How do you open pop up blockers?Best solution by Yahoo! Answers
For every problem there is a solution! Proved by Solucija.
-
Got an issue and looking for advice?
-
Ask Solucija to search every corner of the Web for help.
-
Get workable solutions and helpful tips in a moment.
Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.