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Valuation Methods 101

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Detailed descriptions will be published over the next few weeks: The Scorecard Method: 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. The Venture Capital Method.

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The 10 Best Sources of Cash to Start Your Business

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Related sources include local business development agencies. Venture capital. An investment from a venture capital firm is usually expensive, in equity and control. If you go for venture capital, don’t expect a quick fix, so prepare to spend at least six months searching for and closing the deal.

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The Funding Gap

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An experienced software engineer, for example, can develop a new mobile app with his or her own resources and market the product on the web with very little capital. There are several important sources of capital for entrepreneurs starting their businesses, depending on the stage of development of the company. 50 billion.

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Valuations 101: The Cayenne Calculator

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The High Tech Startup Valuation Estimator is an online tool developed by Cayenne Consulting to assist entrepreneurs and investors in estimating the pre-money valuation of startup enterprises. This calculator uses 25 questions to size up the progress of the new venture and calculate a pre-money valuation for investment purposes.

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Is gust.com a difficult platform to replicate?

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When people would ask a similar question back then about the difficulty of software development, my usual response was “anyone can write a TAP program over a weekend that will work with 80% of the paging systems in the world…but getting it to work on the other 20% will take you a year.” despite having lots of competitors.

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The right investors for the right stage

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Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. Of course, growth and development are really a continuum. You also will find that the stage your startup is in dictates where you go to seek funding. Funding sources specialize in certain growth stages.

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Angel Investors Do Make Money, Data Shows 2.5x Returns Overall

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In addition, angels were up against a selection problem: All the best entrepreneurs and opportunities would naturally gravitate to the best venture capital funds, leaving only the “scraps” for angel investors. This is absolutely competitive with venture capital returns. So which is it? Only they’re not.