Gust

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10 Rules of Thumb for Startup Investment Valuation

Gust

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary. How much is NewCo worth to investors at this point (pre-money valuation)? NewCo doesn’t have any of these yet. Early customers and contracts in progress add value.

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Startups are the Place to Find and Use Baby Boomers

Gust

Startups can rarely afford or even attract the young superstar C-level executives they covet – these people want big salaries, big staffs, and big budgets – who are also known to push founders out of the way. Boomer angels won’t squeeze you for every dollar; they want to see your joy in success. Interim executive.

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Who is the most important person in a tech/web startup (visionary, programmer, etc.)?

Gust

That is why it is not uncommon to see big enterprise sales people making high six figure, or even seven figure, salaries or commissions, while a neophyte coder might be in the low five figure range. Similarly, a crackerjack CTO might be in the mid six figures, but a kid doing inside sales may start at the opposite end of the spectrum.

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