Finance Pay to Play Pre-Money Valuation Revenue 
Both Sides of the Table
SEPTEMBER 29, 2009
Also, it’s harder to pay a $30 million pre-money value on an unproved company when you see public companies with $100 million in sales trading for less than $20 million. Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. The deal was done in late 2007.
Tim Keane
JANUARY 12, 2010
For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing. You can vary both valuation and term-sheet assumptions (in the gray boxes) to assess the impact on the values of the business. This is why a bottom up approach is more credible.
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