The Founder Confidence Index: Driving Company-Investor Fit

Tuhaye Venture Partners Yellow City

So far, we’ve only discussed pricing an investment through the lens of the venture investor. While some might argue that the venture investors’ willingness-to-pay for equity should serve as a signal for the true value of a business, especially given the sheer volume of those doing so, this approach completely ignores the supply-side of the market: the founders.

Equity Leverage And Measuring Risk

Tuhaye Venture Partners Yellow City

At Tuhaye, we strive to quantify early-stage risk so that we can utilize it in our pricing methodology. One of our simple measures to evaluate the underlying Risk at an investment is to look at a company’s Equity Leverage at the time of financing.