Startup Professionals Musings

NOVEMBER 26, 2012

This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)?

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Startup Professionals Musings

SEPTEMBER 30, 2011

This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)?

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Gust

NOVEMBER 18, 2012

This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)?

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Startup Professionals Musings

SEPTEMBER 6, 2010

This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)?

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Gust

OCTOBER 20, 2011

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. In most regions, the pre-money valuation does not vary significantly from one business sector to another.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

www.mattbartus.com

DECEMBER 9, 2012

Let’s say you receive a term sheet for a $1 million investment at a $3 million fully diluted pre-money valuation, and you’re kind of disappointed. Take a look at the numbers: Pre-Money. One possibility is to negotiate a higher valuation and offer warrants (i.e., Post-Money. Option Pool.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

www.paulgraham.com

APRIL 28, 2010

Some angel groups charge you money to pitch your idea to them.Needless to say, you should never do this. A big-name VC firm will not screwyou too outrageously, because other founders would avoid them ifword got out. When we got into such a scrape, our investorstook advantage of it in a way that a name-brand VC probably wouldnthave.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76