Venture capital investors — valuation and milestones

By Simon Walker

Venture capital investors will agree with the company in which they intend to invest on a valuation for the company prior to the new investment round (the pre-money valuation). The pre-money valuation is used to determine the price per share to be paid by investors on the completion of the new investment round (the purchase price). The purchase price is calculated by dividing the pre-money valuation by the fully diluted number of shares of the company immediately prior to the time of completion.

Fully diluted usually includes shares that have been issued by the company, shares allocated to the employee option pool and any other shares that the company could be required to issue through options, warrants, convertible debt or other commitments…

Click on the link below to read the rest of the Taylor Wessing briefing.

Briefings from Taylor Wessing

View more briefings from Taylor Wessing

Analysis from The Lawyer

  • merger deal

    Corporate crunch time: who will triumph at The Lawyer Awards 2014?

    As the equity capital markets rocketed back into favour and global M&A saw at least a partial return to form, there have been some rich pickings for The Lawyer’s Corporate Team of the Year award shortlisted firms in 2014. 

  • singapore orchid

    Singapore: Cash course

    The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world

View more analysis from The Lawyer

Overview

5 New Street Square
London
EC4A 3TW
UK
http://www.taylorwessing.com

Turnover (£m): 228.00
No. of lawyers: 860
Jurisdiction: UK
No. of offices: 4
No. of qualified lawyers: 67 (International 50)

Jobs