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Valuations 101: Scorecard Valuation Methodology

Gust

These angel investors generally invest $25,000 to $100,000 in a round totaling $250,000 to $1,000,000.  In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. As can be seen the average (mean) pre-money valuation for recent pre-revenue deals is $2.1

How Investors Think About Valuation of Pre-Revenue Startups

SoCal CTO

Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. Bill Payne is an expert on how early-stage investors should look at valuation. He just post: Establishing the Pre-money Valuation of Pre-revenue Startups. What are they really looking for? is a requirement.

A Five-Minute Tutorial On How To Value Your Startup

Startup Professionals Musings

Equally bad is professing no valuation estimate at all, asking investors to “make me an offer.” reveneue Shark Tank startup valuation

E-Commerce: Funding, Terms & Valuations Pre-IPO

Recent Buzzes - VC Experts, Inc.

SaaS platforms in the social/e-commerce industry are about finding the right channels and connecting your brand to the world, topped with a sense of excitement and urgency, (the sense of excitement from getting a good deal and the sense of urgency of the deal not lasting forever

DoubleVerify Raises $33 Million on a $200 Million Valuation

VC Cafe

According to Ynet , the deal values DoubleVerify at $200 million. billion acquisition by Google. To date, DoubleVerify has raised $16.5

5 Shark Tank Lessons Every Startup Should Understand

Up and Running

Valuation. Watch how the sharks deal with valuation. That establishes their proposed valuation. It’s simple math. . Market Size.

Why it’s nice to compete against a large, profitable company

A Smart Bear: Startups and Marketing for Geeks

The current valuation of the company is based on continued growth in revenue and earnings, not erosion due to ankle-biters. But wait! Wrong.

Avoid New Venture Shortcuts That Scare Away Investors

Startup Professionals Musings

Non-credible funding request or unreasonable valuation. Future unproven projections don’t set today’s valuation.

10 Answers That Make Your Startup Plan Investable

Startup Professionals Musings

Justify funding requirements, use of funds and specify a current valuation estimate. What is the business problem you are solving?

Revenue benchmark for Series A – $1m run-rate and 20% MoM growth

The Equity Kicker

Companies with greater revenues and stronger growth are able to raise bigger rounds at higher valuations. Similarly, companies with faster growth will get a way with lower revenues and/or be able to command higher valuations. Revenues and growth are only of significance if the company is otherwise attractive.

Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

This can be a spectacular situation IF there is freely available capital to fund the company at good valuations. Gross margin positive !=

Venture Outlook 2016

Both Sides of the Table

Either we’ve discovered magical beans and elixir or perhaps we’ve gotten ahead of ourselves on valuation. Boom and bust. Are VCs?

LP 149

8 Ways An Investor Pitch Differs From A Product Pitch

Startup Professionals Musings

Partnerships, distribution channels and pricing models should be included. “If we build it they will come” is not a marketing and sales strategy.

A growth engine without a profit engine is incomplete thinking

The Equity Kicker

I just saw this diagram on Growthhackers in an article explaining Uber’s success. And they have had a lot of success.

The Funding Gap

Gust

Milestones are accomplishments that demonstrate the viability of the business; hence, they increase the valuation of the company. ANNUAL US $$$.

Why You Should Stop Worrying About Raising VC Money for Your Tech Startup

Up and Running

You’ll get a low valuation. In the early stages of your startup, you’re likely going to focus on a few, highly optimized marketing channels.

How do you know when to exit your company?

StartupCFO

Or hopefully multiple bell curves, sparked by new products and new sales channels. When should you sell your company? You won’t win. Of course!

These 10 Key Elements Make a Business Plan Fundable

Gust

Clearly define the customer, channel, and revenue model associated with this solution. Include a current valuation estimate.

An Inside Scoop on the Funding Environment and What it Might Mean for You

Both Sides of the Table

Mutual funds had begun marking down the valuations of their private investments in high-profile deals. $30 million. Fall turned to winter.

Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

However, these nosebleed valuations make it even more important in getting the acquired company integrated correctly. The Innovation Portfolio.

Bootstrapping Is Much More Fun Than Investors

Startup Professionals Musings

Use multiple social-media channels, blogging, email and voicemail to build the same image and responsiveness as larger competitors.

Traction Metrics Seed Real Startup Funding And Growth

Startup Professionals Musings

Traction is the measure of how many of these have been validated, and their projection to your business valuation.

These 10 Key Elements Make a Business Plan Fundable

Startup Professionals Musings

Clearly define the customer, channel, and revenue model associated with this solution. Include a current valuation estimate.

ESADE Business School Commencement Speech

Steve Blank

Look at the valuations of companies like Tesla, Illumina, and Twitter. Everyone, hold your phone up in the air like this. And Nokia? 

IRR 149

A Founder's Guide to M&A

Hazard Lights

As a Founder of a venture backed company, eventually the question of whether and how to seek liquidity for your shareholders will come into question. 

Beyond the Lemonade Stand: How to Teach High School Students Lean Startups

Steve Blank

For their first startup, we chose a 3-year old funded company that was working to refine its customer segment and channel for its physical product. 

Lean 148

How Winning Startups Tackle Tough Growth Constraints

Startup Professionals Musings

There is nothing wrong with growing your business by selling more of your solution to more people in more cities, states, and countries.

How to value your company for sale (Part 1)

A Smart Bear: Startups and Marketing for Geeks

Or a company like Zappos (who was famous, growing, and profitable) still got only a 1x sales valuation when bought by Amazon because of thin margins.

Sales 81

Quality over quantity on The Equity Kicker

The Equity Kicker

When I look in my traffic sources now it’s all Twitter, Facebook, Google and aggregators like Mattermark, channels where posting daily makes much less of a difference. Next up will be some thoughts on mutual funds investing in startups and their impact on valuations and the VC industry. One of his tips was to post every day.

30 Questions Angel Investors Will Ask You

Up and Running

How did you come up with that valuation? When you pitch a startup to angel investors, you want to get questions. Embrace interruptions.

How much capital should you raise?

Version One Ventures

Keep funding to a minimum until you have found a product-market fit Early rounds are particularly expensive, because company valuation is low.

10 Top Reasons For First-time Entrepreneur Failure

Startup Professionals Musings

Intellectual property is also often the largest element of early-stage company valuations for professional investors. Execution skills are weak.

The Top 4 Items You Need Documented When Selling Your Website Through a Broker

Blogtrepreneur | Entrepreneur Blog

Firstly, the website broker will review the data in order complete an accurate assessment and valuation of the business. Blog & Grow

L.A.'s 10 Hottest Start-ups

Fresh Inc.: The Staff Blog

Based in Venice Beach, the company is rumored to have a valuation between $500 million and $1 billion. L.A.''s start-up scene is booming. users.

The difference between Facebook bulls and bears

Jason Crawford

As others have pointed out, the growth Facebook needs to justify that valuation can’t come entirely from the userbase—there literally aren’t that many people  on Earth. A lot of the growth will have to come from increased CPMs, and there is no clear path to significantly increased CPMs from banner ads.

10 Common Startup Flaws Leading To An Early Demise

Gust

Intellectual property is also often the largest element of early-stage company valuations for professional investors. Execution skills are weak.

Investors Expect Ten Essentials in a Business Plan

Startup Professionals Musings

Clearly define the customer, channel, and revenue model associated with this solution. Include a current valuation estimate.

How To Sell Your Ecommerce Business For Maximum Value

YoungUpstarts

No two businesses are exactly alike, and there are numerous variables that can affect the overall company valuation. They want to make a profit.

10 Common Startup Flaws Leading To An Early Demise

Startup Professionals Musings

Intellectual property is also often the largest element of early-stage company valuations for professional investors. Execution skills are weak.

Crowdfunding: What to Know Before You Go All In

Fresh Inc.: The Staff Blog

If you establish a convertible note, for example, many of them have valuation caps. But are you ready? Those are, indeed, real dangers.