Yet, at the pre-revenue stage of development, angel investors price both companies at a pre-money valuation of $1.5 It is possible to grow a company to a valuation of $30 million on one or two angel rounds of investment.  million.  It doesn’t seem right, huh? But, it is…and here is why.  million in most parts of the US.  MORE >>

Startup Marketing Blog – By Sean Ellis Unlocking Startup Growth By Sean Ellis of 12in6 May 17th 10 Key Elements of a Massively Scalable Startup VC backed startups generally aspire to valuations in the hundreds of millions or even billions of dollars, but very few really consider all of the elements they’ll need to make it happen.  MORE >>

Anti-dilution Provisions. While the timing of conversion is not a very hot topic in negotiating a term sheet, the anti-dilution provision can be if the investors decide to play hardball. These adjustments are referred to as “price-based” anti-dilution protection. Optional Conversion and Mandatory Conversion. MORE >>

Prior to the burst, investment and valuations were out of control. It seemed that all anyone had to do was write a business plan to get money and high valuations. The companies with low prices either had to dilute investors in a financing, had enough to survive, or went out of business. The past is the past! MORE >>

think there are three fundamental truths regarding the valuation of early stage businesses by potential investors: The first is that a pre-money valuation is ultimately an outcome of negotiation , rather than a mathematical calculation of discounted cash flow or any other metric of potential company performance. By Al Schneider. MORE >>