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Valuations 101: The Risk Factor Summation Method

Gust

The Risk Factor Summation Method the fifth methodology for estimating the pre-money valuation of pre-revenue companies we have described in recent posts. Readers may have noted that both the Scorecard Method and the Dave Berkus Method considered a narrow set of important criteria for investment in arriving at a pre-money valuation.

Valuation 102
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Why are Revenue-Based VCs investing in so many women & underrepresented founders?

David Teten

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. Realistic projections.

Revenue 60
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Fundraising Now? Remember Morality Impacts Valuation

ReadWriteStart

New talk of capital efficiency is gratifying, but there was another lesson from pre-COVID-19 valuation struggles. Venture capitalists and early-stage investors have told all of us, founders are critical to a startup’s valuation. The action includes training in the full range of customer service skills that bring in revenue.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. These usually play a role in the very early stage of your business, primarily pre-revenue. Point number 3: Never raise money with an increased valuation.

Startup 150
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The Changing Structure of the VC Industry

Both Sides of the Table

We are in a bubble (with so many private $1bn+ valuations). pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. Unprecedented revenue growth + companies staying private longer =. Where are we today? .” Lots of new entrants moving to capture this value =.

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5 Things That Make Your Ecommerce Business More Valuable

YoungUpstarts

It’s not just about revenue. While revenue is taken into consideration, there are more components involved in valuing a business. . The only way to get an accurate value estimation is to hire a business broker to perform a business valuation. Build a strong reputation management campaign. Are you selling your business?

eCommerce 264
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Cram Down – A Test of Character for VCs and Founders

Steve Blank

At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. A down round is when a company raises money at valuation that is lower than the company’s valuation in its prior financing round. They’re Back. Why do VCs Do This?

Cram Down 412