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Valuation Methods 101

Gust

This is the first of a six part series on different methods used by angel investors to arrive at pre-money startup valuations. The Venture Capital Method. The Venture Capital Method (VC Method) was first described by Professor Bill Sahlman at Harvard Business School in 1987 in a case study and has been revised since.

Valuation 174
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Valuations 101: The Dave Berkus Method

Gust

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. He has invested in more than 70 startup ventures.

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Good Times Ahead for VC-backed Tech Companies?

Both Sides of the Table

On the third Wednesday of every month I co-chair a meeting called the SoCal VCA (venture capital alliance), which represents participants from all of the top venture capital firms in Southern California as well as prominent members of the Tech Coast Angels (TCA). Love to hear more views! .

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A Guide to Using Authority & Social Proof in Fund Raising

Both Sides of the Table

. “Yes&# was given to me by one of my favorite angel investor / seed VC’s to work with – John Greathouse of Rincon Venture Partners and author of the blog InfoChachkie that you should check out because it is filled with great info from a guy who has been a very successful operator. So what are you waiting for?

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There Is Only ONE Silicon Valley

Gust

Boston, New York City, Seattle and Southern California spawn many exciting startups…but do not exceed the Valley in any measure of entrepreneurial achievement. Many other communities are entrepreneur-friendly and, by any measure, have the tools in place to spawn new high growth companies.

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Trends in Seed Stage Funding for Entrepreneurs

Gust

Note that I merged the two Southern California regions (LA/Orange County and San Diego) into one. Here are the trends in venture capital financings from 2006 through 2010 – the number of seed stage deals funded and total investment by region in millions of dollars. . Southern California*. All Seed-VC.

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Caveat Emptor – look out Seed Investors for the $0 return startup.

Scalable Startup

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.