Finance Post-Money Valuation Revenue Valuation 
Both Sides of the Table
JUNE 5, 2011
2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.
Pascal's View
JULY 9, 2017
This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors.
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Lightspeed Venture Partners
OCTOBER 7, 2012
They won a design award at a trade show, but have no revenue and no orders. That’s why most entrepreneurs do not make a specific ask on valuation, but wait to hear offers from investors. As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today.
Both Sides of the Table
SEPTEMBER 18, 2014
It’s like we need a finance 101 course for entrepreneurs. Revenue multiple? Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. People seem concerned about valuation. Him: They think $14 post is a bit too high. There were no metrics. What proof points?
www.mint.com
MARCH 9, 2010
If the answer to the question centers around “We will achieve revenue soon so our net will improve and give us more runway,” it means the company is in trouble because no product ever ships on time nor achieves the company’s “conservative forecast.” What is the post-money valuation of your last round? That’s cool.
Gust
SEPTEMBER 17, 2014
It’s like we need a finance 101 course for entrepreneurs. Revenue multiple? Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round.
ithacaVC
JANUARY 14, 2014
I was giving some advice the other day on how to approach Series B investors in terms of valuation. Company X raised its Series A at a pre-money valuation of $5mm and it raised $4mm dollars. So the post-money valuation after the Series A was $9mm. It has just started to generate revenue.
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