SoCal CTO

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How Investors Think About Valuation of Pre-Revenue Startups

SoCal CTO

Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. Bill Payne is an expert on how early-stage investors should look at valuation. He just post: Establishing the Pre-money Valuation of Pre-revenue Startups. What are they really looking for?

Valuation 198
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Equity for Early Employees in Early Stage Startups

SoCal CTO

If the company's valuation is $2 million, $90k is 4.5%. Of course, to be able to use this kind of formula, you will need to be able to determine how much impact the person will have and figure out a valuation. I've talked about this topic before in How Investors Think About Valuation of Pre-Revenue Startups.

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Angel Investment Criteria

SoCal CTO

By way of background for the question, there’s a great post by Bob Aholt, a Pasadena Angel: An Angel Investor’s Thoughts on Valuation. For example, TCA’s evaluation criteria first bullet is: A market opportunity sufficiently large to create a business that can grow to at least $50 million in annual revenues. So get real.

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Top 30 Startup Technology and Product Posts for September 2010

SoCal CTO

5 great viral marketing campaigns (and what small businesses can learn from them!) - crowdSPRING Blog , September 13, 2010 At crowdSPRING we talk a great deal about how we can leverage our limited marketing resources to drive traffic and revenues and build strong community. Except they won’t be called Product Managers. That crazy chicken.