Gust

OCTOBER 19, 2014

I always advise software startups to file patents to protect their “secret sauce” from competitors, and to increase their valuation. Yes, the software patent process is a mess. I say this with conviction even after I survived the process, and have a software patent pending. Software technology changes rapidly.

Software Review 173

Software Review Software Technical Review Intellectual Property 173

Gust

NOVEMBER 1, 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. It is one of the useful methods for establishing the pre-money valuation of pre-revenue startup ventures. Post-money Valuation = $ 2.125 million. million ÷ 20X.

Venture Capital 161

Venture Capital Valuation Pre-Money Valuation Post-Money Valuation 161

Gust

OCTOBER 16, 2012

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 software, internet, mobile and telecom deals.

Angel Groups 169

Angel Groups Valuation Pre-Money Valuation North Dakota 169

Gust

NOVEMBER 18, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Gust

OCTOBER 12, 2011

During the summer of 2010, I developed a workshop, A New ACEF Valuation Workshop for Angels and Entrepreneurs. To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies. 2011 Angel Group Valuation Survey.

Angel Groups 125

Angel Groups Valuation Pre-Money Valuation St. Louis 125

Gust

DECEMBER 6, 2011

An experienced software engineer, for example, can develop a new mobile app with his or her own resources and market the product on the web with very little capital. Milestones are accomplishments that demonstrate the viability of the business; hence, they increase the valuation of the company. What might these milestones be?

Angel Investor 179

Angel Investor Venture Capital Valuation Software Engineering 179

Gust

SEPTEMBER 27, 2014

One excellent way to do this (with a good bit of help from the experts), is to create a draft business plan using LivePlan from Palo Alto Software. If you share your material with a VC and get a polite response that you are out of their range, you should double check the investor’s profile page.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159