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Valuations 101: The Venture Capital Method

Gust

We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. It is one of the useful methods for establishing the pre-money valuation of pre-revenue startup ventures. million ÷ 20X.

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Take Five – how shut are the venture markets right now?

VC Cafe

According to new research by Pitchbook , the trickle down effect has already started in seed and series A startups with round sizes and valuations shrinking in size compared to 2021. But recently those round sizes and valuations have tumbled to about $10 million and $50 million, respectively, he said.

Valuation 151
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Gross burn is the total amount of money you are spending per month. Net burn is the amount of money you are losing per month. So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. Think DropBox, Airbnb, Uber, Maker Studios.

Burn Rate 383
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So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

There is much talk these days that startup valuations have decreased and may continue to do so and that the amount of time it takes to fund raise may take longer. The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital.

Burn Rate 150
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Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

Now that Google’s acquisition of ITA is closed, following lenghty FTC review, it would appear Kayak is poised to proceed with their IPO in the coming months. =. Kayak Software Corporation. Financial Snapshot: 2010 Revenue: $170 million. Revenue growth: 51% YoY (2010), 1% YoY (2009), 131% YoY (2008).

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90 Things I've Learned From Founding 4 Technology Companies

betashop.com

From the start we said that we would never make a decision as to what features to build or what products to sell based on revenue alone, rather we would focus on things that make our customers smile and by doing so lots and lots of revenue will fall out over time. We do twice-yearly reviews of all Fab team members. Fab Culture.

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Guy Kawasaki’s 10 Questions to Ask Before You Join a Startup

www.mint.com

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.