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


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

Startup Valuation Tips


In order to attract investors, you have to know the valuation of your company or how much your company is worth. Determine Your Valuation.

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


In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target.

10 Rules of Thumb for Startup Investment Valuation


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.

Valuations 101: The Venture Capital Method


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.

What Startups Need To Know About Business Valuation


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

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.

2012 Valuation Survey of Angel Groups


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).

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 the valuation of the company increases. million ÷ ($1.5 million + $0.5

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

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.

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 Startup Valuation Works

Business Plan Blog

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

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.

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.

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.

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

US startup valuations reach ten year highs

The Equity Kicker

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

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

Valuation Methods 101


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

How Investors Think About Valuation of Pre-Revenue Startups


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.

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.

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. A valuation is more than just a commodity. Annually.

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

Both Sides of the Table

Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist.

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

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

The Startup Failure Rate Among Angel-Funded Companies


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….


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


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

s 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

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?


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

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.

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

Seed Stage Capital

skip to main | skip to sidebar 11 January 2011 Deals Gone WIld (aka "What Drives Massive Startup Valuations?") to $3.7B for Zynga, $6.4B

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?

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

Join The Unicorn Club Of Billion-Dollar Companies

Startup Professionals Musings

If your new venture is still in the idea or development stages, don’t even think about a high valuation. These are popularly called “unicorns.”