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Valuation Part I: Peeling the Onion, or How Top Investors Value the Startups They Invest In

Gust

Early-stage technology company valuations are generally a crap-shoot. How To Fundraise Starting Your Company valuation valuations

When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

Or, in the case of a convertible note, they’ll explicitly state a valuation cap. Building a startup and currently in the seed stage?

Valuations 101: Scorecard Valuation Methodology

Gust

These angel investors generally invest $25,000 to $100,000 in a round totaling $250,000 to $1,000,000.  In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. As can be seen the average (mean) pre-money valuation for recent pre-revenue deals is $2.1

10 Rules of Thumb for Startup Investment Valuation

Gust

How much is NewCo worth to investors at this point (pre-money valuation)? NewCo might be able to pick up an initial $50K valuation on this item.

10 Rules of Thumb for Startup Investment Valuation

Startup Professionals Musings

How much is NewCo worth to investors at this point (pre-money valuation)? NewCo might be able to pick up an initial $50K valuation on this item.

5 Ways To Radically Improve Your Company Valuation

YFS Magazine

For business owners, startup valuation is a topic that causes lots of angst, raises tons of questions and definitely gets emotions blazing.

What Startups Need To Know About Business Valuation

YoungUpstarts

Startup companies are often cash poor and have little in the form of current monetary compensation to offer their employees.

A Five-Minute Tutorial On How To Value Your Startup

Startup Professionals Musings

Equally bad is professing no valuation estimate at all, asking investors to “make me an offer.” reveneue Shark Tank startup valuation

2012 Valuation Survey of Angel Groups

Gust

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. 2012 Valuation Survey. pre-money valuation in US$ millions).

8 things to consider when determining your startup valuation

The Next Web

Setting a valuation for an early-stage startup looking to raise money is tough. In regards to your market? Young Entrepreneur Council

How we determine valuations for marketplaces

Version One Ventures

I often get asked about how to determine the valuation for a marketplace startup that is starting to scale. YoY growth of at least 30%.

How To Compute The Valuation of Your Startup

FairSoftware's Blog

Startup valuation is a misunderstood and complex topic. As you launch your startup, you are really shooting for a certain trajectory.

Failsafe Ways to Increase Your Startup Valuation

Early Growth Financial Services

Ahh startup valuations. Why are valuations even important? EGFS Founder and CEO David Ehrenberg and Molly Otter, Chief Investment Officer for Lighter Capital, led a session on How to Increase Your Startup Valuation. Below are some of the key takeaways: There are 3 main types of valuation: 1.

What Are We Talking About When We Talk Valuation?

Early Growth Financial Services

Valuation is one of those ubiquitous words: at least when it comes to discussions around startups — and, of course, stock market multiples. In fact, there are several types of valuations and they come into play at different times in a company’s lifecycle. And then there are 409A valuations.

How Startup Valuation Works

Business Plan Blog

Startup Valuation is Tricky Business. How Startup Valuation Works. Comments comments Powered by Facebook Comments.

A Bubble for Seed Stage Valuation

Angel Investing News

When entrepreneurs raise equity capital for startup companies, the investors’ percentage of ownership is determined by the negotiated valuation for the company at the time of investment.  For example, if the negotiated pre-money valuation is $1.5 Suster suggests we will see the valuation bubble burst within the next 24 months.

How This Health Insurance Startup Landed Its $1.75 Billion Valuation

Fresh Inc.: The Staff Blog

Oscar is well-funded and growing, and recently landed on the list of unicorns for 2015. But it's got lots of work to do to maintain its lead

Age of companies when they achieve $1bn valuations

The Equity Kicker

Startup general interest I just saw the above chart in a post about exponential organisations from Salim Ismail of the Singularity University.

Om Malik on why valuations defy metrics

The Equity Kicker

That’s true, but in the startup industry we have to do it every day. For larger valuations it is the latter.

5 Reasons Startups Need Revenue As Well As Users

Startup Professionals Musings

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation.

US startup valuations reach ten year highs

The Equity Kicker

Venturebeat reported yesterday that US startup valuations have reached ten year highs. Venture Capital

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.  Return on Investment (ROI) = Terminal (or Harvest) Value ÷ Post-money Valuation. (in the case of one investment round, no subsequent investment and therefore no dilution). The Venture Capital Method.

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? is a requirement.

Startup Valuations: 7 Things to Look for in a Valuation Company

Early Growth Financial Services

Valuation. What you may not know is that it really does matter who performs your valuation. There are a lot of valuation companies out there, so I know many entrepreneurs are tempted to just shop around until they find the lowest price, but this is a mistake. valuation is more than just a commodity. You know you need one.

Dave McClure Braces for Startup Valuation Drop

Fresh Inc.: The Staff Blog

It's still a good time to look for early funding but don't try to jack the market, says the CEO of Silicon Valley accelerator 500 Startups

Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

This starts with understanding how VCs and entrepreneurs often see valuation differently. Those were the dog days of entrepreneurship. Normal.

2011 Valuation Survey of North American Angel Groups

Angel Investing News

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.

Tech Startup Valuations Explained – It All Comes Down to Willingness

Fresh Inc.: The Staff Blog

How do tech start-up valuations work

The Startup Failure Rate Among Angel-Funded Companies

Gust

But to be a successful entrepreneur or serious angel investor, you must have a realistic understanding of the startup failure rate and Read more >.

Startup Valuations – Again….

ithacaVC

I have written about startup valuations previously. If you are advising startup founders, I strongly suggest having them read all 4 of the posts to get the lay of the startup valuation land. There’s a reason it’s so difficult to figure out – valuations have little basis in reality for early stage companies.

2011 Valuation Survey of North American Angel Groups

Gust

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.

Mark Cuban: There's 'Absolutely' a Startup Valuation Bubble

Fresh Inc.: The Staff Blog

iCONIC conference about the problem of inflated private company valuations--and why entrepreneurs will wind up better for it The 'Shark Tank' host recently spoke at Inc.'s

Airbnb's $30 Billion Valuation at Risk Over Illegal Listings

Fresh Inc.: The Staff Blog

A venture capitalist has said the home-sharing startup may not be worth $30 billion after all, if all the posts for illegal rentals disappeared

The Resetting of the Startup Industry

Both Sides of the Table

Much has changed in the past four months of the technology startup world and how outsiders value the business. Be realistic on valuation.

Find a Fair Valuation for Your Startup

Fresh Inc.: The Staff Blog

Cheezburger Network CEO Ben Huh explains how to strategically value your company

Why Does Startup Pricing Vary by Location?

Gust

After all, they just read in TechCrunch that investors funded a company similar to theirs at an $8 million pre-money valuation!

Deals Gone WIld (aka "What Drives Massive Startup Valuations?")

Seed Stage Capital

You can view that post (and the valuation table) here. What drives the sky-high valuations and manias we occasionally see around a deal?

The Secrets Behind Many Successful Startups

Vinicius Vacanti

“What is your startup’s unfair advantage?”, But, how in the world is a startup supposed to have an unfair advantage?

Current Startup Market Emotional Biases

Feld Thoughts

If you are a founder, an employee in a startup, or an investor in a startup, you have to be playing a long term game. The post Current Startup Market Emotional Biases appeared first on Feld Thoughts. read it again this morning when I woke up. And I expect I’ll read it at least one more time. But why? Period.

Startup Physics

A VC : Venture Capital and Technology

Yesterday I suggested another to William Mougayar  via Kik when he observed to me that valuation mania has emerged in the blockchain for financial institution space. also wrote one about the numeric relationship between creators, curators, and consumers on a platform but I’m having trouble finding it and linking to it right now.