# From Term Sheet to Price Tags: What Do All The Numbers Mean?

> A NachoTuesday interview — the C-Suite Insights series from NachoNacho, the B2B SaaS and AI
> marketplace. In conversation with Jordi Pujol, Managing Director, Objective IBV.

- **Page:** https://nachonacho.com/nachotuesday/video/From-Term-Sheet-to-Price-Tags-What-Do-All-The-Numbers-Mean
- **Guest:** Jordi Pujol, Managing Director, Objective IBV
- **Guest on LinkedIn:** https://www.linkedin.com/in/jpujol1/
- **Recorded:** 2026-04-07
- **Watch:** https://www.youtube.com/watch?v=I1xAduRRXF4

## Summary

In this video from the NachoTuesday series, Jordi Pujol from Objective joins Andy Karuza to demystify the complexities of startup valuations, term sheets, and the M&A process. The discussion highlights that while "headline numbers" often capture a founder's attention, the underlying rights, preferences, and long-term implications of a deal are far more critical for sustained success. Pujol emphasizes the importance of data organization, unit economics, and building a "moat" through community and stickiness, rather than just chasing high paper valuations that can lead to stressful "down rounds" later. 5 Key Takeaways Valuation Rights > Headline Numbers : Founders often fixate on the total valuation figure, but the specific rights and preferences (like liquidation preferences or participation rights) can significantly impact how much money you actually walk away with in different exit scenarios. The "Down Round" Trap : Setting an artificially high valuation early on creates immense pressure. If you fail to meet lofty metrics, you may be forced into a "down round", which can damage company morale and investor relations. Operational Readiness for M&A : Unlike VCs who buy into a "story," M&A buyers focus on financials and operational cleanliness. Having organized data, such as five-year revenue breakdowns by customer and product, signals a professional and low-risk investment. Focus on "Stickiness" and Unit Economics : In a world where customer acquisition costs (CAC) are high, showcasing high retention and the ability to "upsell" customers from free to premium tiers is a primary driver of valuation. Leverage Viral Testing : Before spending millions on marketing, founders should use "free" channels like Reddit, Discord, and Slack to test features and build a community. This "viral traction" acts as a de-risking factor for potential investors

## Full transcript

Good morning everybody, and welcome to another NachoTuesday. Today I have Jordy here with Objective. Without further ado, we’d love if you could introduce yourself, your background, and your company. All right, Jordy Pujol from Objective. I’m obsessed with everything valuation, pricing, and how to determine the value of pretty much anything. Nice. Tell us more about your background. How did you become part of Objective, and what are your goals there? 0:36 Sure. It’s funny—I’ve always been obsessed with understanding the value of things. Why is a diamond, just a tiny shiny rock, worth so much? At the same time, why are certain company shares worth so much while others don’t get the same attention? To me, at the end of the day, it’s all about cash flow. It’s about dollars and cents. If something is generating cash flow, it should be worth just as much as something else, even if it’s AI or tech. I got obsessed with that early on. I studied economics in college, then did a master’s in finance and an MBA in entrepreneurship. This world really made sense to me at Objective—helping early-stage entrepreneurs, mid-stage founders, and family-owned businesses with valuation, compliance, and making value-based decisions. That’s what I do at Objective. We also sell companies, but my role is primarily on the financial modeling side. 1:28 Nice. Tell us about some companies you’ve worked with. Any interesting stories? I can’t name names due to contracts, but our partner Channy always says, “Sometimes I’m working with two guys in a garage and a dog, and sometimes with billion-dollar companies.” That’s honestly the range I work with. I’m about to deliver a valuation for a company worth close to a billion dollars, and I’m also working with very early-stage entrepreneurs trying to build unique technologies. I specialize in tech—biotech, SaaS, even beverage tech. I’ve been in this space for about five years. Before that, I was at Ernst & Young working with asset managers. We handled $20 billion transactions while also supporting portfolio companies. I enjoy working in high-growth SaaS, biotech, and other unique industries. 2:47 You might see more small AI teams reaching billion-dollar valuations soon. I recently valued a company that raised around $100 million with a team of seven people. That’s wild—four or five engineers plus a few business roles can create a billion-dollar company. That’s the world we’re moving toward. 3:31 When founders get a term sheet, what do the numbers actually mean for them? 3:47 If you’re getting a term sheet, you’re already in a great position. You’ve succeeded beyond most companies. People get stuck on the headline valuation—$5M, $10M, $100M. Those numbers matter for perception, but what really matters is: what are you giving up? You need to analyze three scenarios: Upside: How much of the company have you given away if things go really well? Middle outcome: Could you exit successfully but still not make much due to investor protections? Downside: Are there terms that could leave you worse off, like owing money? Focus on rights and preferences—liquidation preferences, participation, and investor protections—because they can matter more than valuation. Also, make sure you’re giving up the right amount of equity. Too little won’t attract investors, but too much (like 45%) is dangerous. 6:26 Are there downsides to having too high a valuation? Yes. If you set expectations too high and don’t meet them, you risk a down round, which creates unnecessary stress and hurts credibility. Valuations are often hypothetical. Instead of focusing on the number, focus on: How much money you need How much equity you’re willing to give up 7:56 Early-stage founders should focus on momentum—getting funding, building the product, and reaching product-market fit. 8:21 Many companies today are wrappers around existing technologies like AI models. Even if you didn’t build the underlying tech, a strong interface or niche focus can still create massive value. 9:21 What moats can founders build early? Community is huge. Embedding your product into workflows (like Slack tools) creates stickiness. Freemium models work well—users try, adopt, and eventually upgrade. If you can show rapid growth (100 → 1,000 → 10,000 users), that traction alone can attract investors. Investors now want: Traction Experience A path to revenue 12:00 Think of it like hiring a chef—you want proof they’ve cooked before, especially for complex work. Even young founders can succeed if they show experience, community involvement, and strong teams. 13:10 Teams with industry experience, networks, and clear advantages are much more fundable. Investors want to reduce risk. 14:05 Should founders build in public and create content? Absolutely. It’s free and acts as a testing ground. If content doesn’t perform organically, it’s not worth scaling with paid ads. First get attention, then focus on conversion—turning viewers into users and customers. 15:52 People increasingly buy into founders themselves. Personal branding builds trust and momentum. 17:44 Testing is key. Try multiple features, see what works, and double down on what gains traction. Start with an MVP that solves a core problem, then expand. 19:25 What metrics drive valuation? Key ones include: Stickiness (retention) Upsell potential Recurring revenue Unit economics and margins Customer acquisition is expensive, so retaining users is critical for long-term value. 23:45 Software is attractive because of high margins and scalability once built. 25:03 Get your product into users’ hands early—even for free—in exchange for feedback. Customer feedback is one of the most important drivers of success. 27:02 It’s fine to have strong conviction, but you need a path to get there. Start with what works now and build toward your vision. 29:08 There’s a general “recipe” for startups—team, traction, customer focus—but execution varies. 31:21 How do M&A buyers differ from VCs? VCs: Focus on story and potential M&A buyers: Focus on financials, operations, and proven performance M&A is much more data-driven and grounded in reality. 34:05 To prepare for M&A, companies need: Clean, organized data Transparent financials Clear decision-making processes This builds trust and increases valuation. 37:16 Objective focuses on: Experienced advisors (ex–Big Four, investment banking) Hands-on senior involvement Providing insights beyond just a valuation number They help companies understand drivers of value and improve them over time. 39:08 Bringing in a third party helps remove bias and gives an objective view of your company’s value. 40:46 You can find Objective through LinkedIn, their website, and blog.

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