Later stage startups have revenue numbers, customer acquisition costs and marketing analyses that can all be plugged into magic financial formulae by VC whiz kids that pop out instant valuations.  Most of the time, establishing valuation ends up being a crap shoot. This is only a general guide on early stage valuation.  MORE >>

Since an investor is focused on ROI, the implication to valuation now becomes clear.  All else being equal, the lower the valuation the higher the (potential) ROI.  Valuation (and any subsequent raises) are casual to the percent of the sale received by the investor.  By Bob Aholt. Now for some details.  In this case 4.55.  MORE >>

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. MORE >>

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Employees ValuationIs it fair for the founders to own about 100% of a startup while employee #1 only owns a few percent? Are the founders 10-1000x more valuable than their employees? The answers are. Yes, it is fair. Value doesn’t matter, timing does. In fact, many employees get better equity deals than the founders. Addendum. MORE >>