Gust
OCTOBER 18, 2011
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. Return on Investment (ROI) = Terminal (or Harvest) Value ÷ Post-money Valuation. (in
Gust
NOVEMBER 2, 2011
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. Dave Berkus is a founding member of the Tech Coast Angels in Southern California, a lecturer and educator. Add to Pre-money Valuation. Zero to $0.5
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Lightspeed Venture Partners
DECEMBER 10, 2012
Revenue is driven by children’s parties, which cost $600-$4,000 for a two hour party for 15 kids, which apparently is the market price for kids parties in LA. The space can host 6-9 parties per weekend, and they generated $350,000 in revenue last year. Almost all of the sharks got indignant about valuation.
Scalable Startup
APRIL 6, 2015
A $1 billion valuation used to be a big deal for a web based company that wasn’t one of the top few. Angel Investor CEO Succession Scalability startup startup CEO angel investor Cash Flow first revenue The Next Level tom nora venture capital' Everyone thought Facebook was nuts when they walked away from such a deal.
Scalable Startup
JULY 19, 2011
Southern California, The “Silicon Basin” - - With the convergence of social media, the Internet, and digital entertainment, Southern California is now humming as a great startup region. I’ve rooted for other places to approach California’s ecosystem, but I know they’ll never come close.
Both Sides of the Table
FEBRUARY 13, 2011
The venture capital industry is so heavily skewed to Northern California, which the remains spilled over Boston, New York & Southern California. We will invest pre-revenue and even pre-product if we have discovered the right team in the right kind of market. There are of course other outposts like Austin and Seattle.
techcrunch.com
FEBRUARY 19, 2010
According to VCs, there’s been a 65% decrease in up-rounds (where a company gets a bigger valuation) in the last six months and more than 60% of those polled expect a longer wait for an exit. Similarly, the bulk of the companies getting funding are still California-based. e.g. invest $2 mil and expect a $60-$100 mil valuation for exit.
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