article thumbnail

Valuations 101: The Risk Factor Summation Method

Gust

The Risk Factor Summation Method the fifth methodology for estimating the pre-money valuation of pre-revenue companies we have described in recent posts. For more information on determining the average valuations in your area, see the Scorecard Method. million pre-money valuation. million.

Valuation 102
article thumbnail

How and Why To Be an Angel Investor

David Teten

million households in the US with a net worth of $1 million or more. Angel investors are generally former entrepreneurs and/or executives, who invest in privately-held, early-stage companies. Villalobos & Payne: “Startup Pre-Money Valuation: The Keystone to Return on Investment” 117.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

10 Rules of Thumb for Startup Investment Valuation

Startup Professionals Musings

How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)? On the other hand, if the pre-money valuation is $4M, the founders ownership remains at a healthy 80% level.

Valuation 270
article thumbnail

10 Ways to Size Your Company’s Value for Funding

Startup Professionals Musings

How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)? On the other hand, if the pre-money valuation is $4M, the founders ownership remains at a healthy 80% level.

article thumbnail

10 Rules of Thumb for Startup Investment Valuation

Gust

How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)? On the other hand, if the pre-money valuation is $4M, the founders ownership remains at a healthy 80% level.

Valuation 187
article thumbnail

Ten Components of Startup Valuation For Investors

Startup Professionals Musings

How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)? On the other hand, if the pre-money valuation is $4M, the founders ownership remains at a healthy 80% level.

Valuation 234
article thumbnail

What to Expect When You're Expecting Venture Capital Returns

This is going to be BIG.

I'd say no--they're taking money from the same endowments, high net worths and pension funds as everyone else. So, whether you're doing Seed, Series A, or Series B, each round would get its net 25% to LPs, no? I assumed the following: Seeds are done as a $1mm round on a pre-money valuation of $5mm.