Comparison between the two individual VCs and their firms. Essay

In comparison between the term sheets that Web Tracker Company has received from the two investors Regent and bantam, there are some similarities and differences that can be seen. In fact, both term sheets were full of legal jargon and pretty complicated according to the cofounders of the web tracker. However, those two terms sheets differ from their estimated premoney valuation since one had estimated less than the other. In the venture capital industries or private equity, the term premoney valuation refers to the valuation of the companys asset prior to financing or investing in that company. For example, if an investor invests cash to the company, therefore this company will have different valuations before and after that investment.
Although the premoney evaluation constitutes the most important part of the term sheet because it is not what entrepreneurs should focus on exclusively? This is due to the fact that, the premoney evaluation includes an option pool, which is always, controlled by the board control of directors. It is suggested that entrepreneurs should look at the promote because this one is the ownership of the founders and the postmoney which indicate the extent at which they got a good deal.
Comparison between the two individual VCs and their firms.
Despite the fact that Ronan spends much time with his company and seems to have a good understanding and advice, bantam is less established and not plugged in. Additionally, the firm have done a few hot deal with not big exist yet .Therefore this makes it less attractive although he seems to be very entrepreneurfriendly like Jones. Furthermore, bantam is a very young company which has no significant probability to perform. In contrast, regent is exceptionally well recognized and it has a significant experience in the industry as it has been a key player in the VC industry for a long time. Moreover Regent is on its eleventh funds with shows that its experience in the field can be of a significant importance to the start up company such as Web Tracker. Therefore, Regent would be more preferable than Bantam and Joness great reputation of sitting on probably 12 firms.
Among many other factors that make Regent more preferable than Bantam include the fact that, Regent as a firm is well connected and very insightful in the business despite the busy schedule of Jones. Additionally, Jones always has an idea about the exact potential issue which is against or for the company. However, taking into consideration the two term sheets, Bantam would be the most attractive since it left for the founders a significant ownership than Regent offer did. In fat, the ownership is the most important factors of voting power in any firm because as a founder someone needs to have a certain influence in the decision making in order to make things works as he planned in the beginning .Therefore, it is important to look on both side in comparison in order to come up with a reliable and profitable conclusion.