A Hands-on Intro to Startup Equity and Valuations | Sydney
About this class
Money makes the world go around, and can also help you take your startup to the next level more quickly. Access to capital cannot only help accelerate product development and sales, but in many cases, partnering with the right investors can influence the trajectory of a business. So what does equity mean and how to split the equity pie with investors?
This session will help students understand the equity jargon, how equity works initially and over multiple rounds of capital raising, and how to retain value and control. We’ll show you how you’ll end up with a smaller piece of a bigger pie, and how that’s totally okay.
We’ll also discuss how valuations work for startups and walk through a cap table spreadsheet that you can use when planning multiple capital rounds.
Takeaways
- Understand the equity jargon (pre and post money, fully diluted, cap table)
- Learn how to do equity calculations
- Understand how valuations are determined, and how pricing can be maximised
- Learn how to create and understand cap tables
Prereqs & Preparation
You can expect to be doing maths hands on in the class to cement the learning as we take you through practical examples of how to do equity and valuation calculations. Students should have a general familiarity with Excel, including knowing how to navigate a spreadsheet. Please bring a laptop with Microsoft Office installed either on PC or Mac. Alternatively, you can just bring your favourite calculator or a simple spreadsheet (it’s not rocket science). This is an interactive class, and your participation and questions are encouraged.
