Finding the right valuation for investors and for yourself



Parker Conrad, founder at startup HR software company Zenefits, Ron Conway, founder at venture capital firm SV Angel, and Marc Andreessen, founder of early browser company Netscape and venture capital firm Andreessen Horowitz, talk about finding a valuation that balances between investor interests and your own.







Task

1. Ask yourself what percentage of your company do you need to keep motivated to run the startup and at what valuations.

2. Think through various investment situations at different valuations and equity percentages, and make sure that there is enough equity to keep you, your cofounder and your team motivated.

3. Make sure you think through 2-3 potential rounds of investment and look at all of the equity dilution – make sure you don't give away too much in any round as it can limit future fundraising opportunities.



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