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The Funding Gap

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A medical device company, on the other hand, may need cash resources to pay for FDA testing, designing the prototype, manufacturing the product, establishing an inventory of the devices and establishing marketing and sales channels for the products. Most high-impact companies need substantial cash resources to sustain their rapid grow.

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Valuations 101: Scorecard Valuation Methodology

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In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target.

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What do investors consider the most important aspect of a potential deal?

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Size, Growth, Concentration, Geography, Demographics, Competition, Channels, Regulatory Environment, Technological Developments, Adjacent Markets, Characteristics of the Deal. Team, Business Model, Traction, Customer Acquisition, Scalability, Defensibiity, Capital Efficiency, Churn, Time to Breakeven, Exit Strategy.

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These 10 Key Elements Make a Business Plan Fundable

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Clearly define the customer, channel, and revenue model associated with this solution. Describe your market penetration strategy, sales channels, pricing, and strategic partnerships. Convince investors that you have lined up sales channels, strategic partners, and a viable marketing strategy. Industry & market sizing.

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10 Common Startup Flaws Leading To An Early Demise

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Intellectual property is also often the largest element of early-stage company valuations for professional investors. A major resource is cash funding, but other resources, such as industry contacts and access to marketing channels may be more important for certain products. Inexperienced team. Resource requirements not understood.