Awesome Startup Tools – Show Me the Money
These startup tools were part of my presentation at UCI’s Applied Innovation’s Lunch & Learn Series: Awesome Startup Tools. This set of tools deals with equity and valuation, and will help you estimate the financial value of your startup and how to handle it at various stages of growth.
This Startup Equity Calculator allows you to answer some questions about the contribution of the various startup cofounders, and it gives you a rough idea of what may be a reasonable percentage split. There, of course, may be other factors to take into consideration, but at least it gives you proximate starting point to begin your discussions.
If you’ve never done an equity investment simulation, you may be shocked at how far a founder can get diluted if they are reckless about fundraising and negotiations. As they showed in HBO’s Silicon Valley, you should only raise what you actually need plus a cushion. If you raise too much too early, there is a tendency to misuse the funds, and you risk a down round in your next fund raise.
If you’re trying to figure out a reasonable bracket for your pre-money valuation, fill out this questionnaire and you’ll get a bracket that you can use for a rough approximation. Be honest. It’s only as good as your answers.
Trying to manage your cap table can be frustrating. This great tool is designed to do exactly that.
CrunchBase accelerates innovation by bringing together data on companies and the people behind them.
CrunchBase is the de facto startup database. You will find out more information about the startups in your business sector in this set of data than anywhere else. If you’re involved with an incubator, an accelerator, or an angel or venture group, you should sign up for access to the Crunchbase dataset. It’s an incredibly valuable set of data.