When entrepreneurs raise equity capital for startup companies, the investors’ percentage of ownership is determined by the negotiated valuation for the company at the time of investment.  For example, if the negotiated pre-money valuation is $1.5 the valuation of the company increases.  million ÷ ($1.5 million)].  MORE >>

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Pre-Money Valuation vs Number of Founders Where Do Tech VCs Invest? But first, let’s look at pre-money valuation by liquidation preference. Explains why the pre is higher. MORE >>

This is the first of a six part series on different methods used by angel investors to arrive at pre-money startup valuations.  It is one of the most useful methods for establishing the pre-money valuation of pre-revenue startup ventures. Then:  Post-money Valuation = Terminal Value ÷ Anticipated ROI. MORE >>

This summer I conducted our third annual survey of the pre-money valuation of pre-revenue companies recently funded by angel groups in North America.  Access to our 2010 and 2011 surveys can be found at 2011 Valuation Survey of North American Angel Investor Groups. Pre-revenue energy and clean tech. Overall. MORE >>

Today, in our series on convertible debt, we examine the conversion valuation cap. The valuation cap is typically only seen in seed rounds where the investors are concerned that the next round of financing will be at a price that is at a valuation that wouldn’t reward them appropriately for taking a risk by investing early in the seed round. MORE >>