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Valuations 101: The Venture Capital Method

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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. 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.

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Valuation Methods 101

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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 Cayenne Calculator

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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. This calculator uses 25 questions to size up the progress of the new venture and calculate a pre-money valuation for investment purposes.

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Valuations 101: The Dave Berkus Method

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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. He has invested in more than 70 startup ventures. Dave’s valuation model first appeared in a book published by Harvard’s Howard Stevenson in the middle nineties.

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Valuations 101: The Risk Factor Summation Method

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The Risk Factor Summation Method the fifth methodology for estimating the pre-money valuation of pre-revenue companies we have described in recent posts. Readers may have noted that both the Scorecard Method and the Dave Berkus Method considered a narrow set of important criteria for investment in arriving at a pre-money valuation.

Valuation 102
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The Funding Gap

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Center for Venture Research. Venture Capital. $20 It is clear from this table that Friends and Family, Angel Investors and Venture Capitalists provide 95% of the capital for new ventures. Pre-seed, startup. Angel Investors. $20 20 billion. Most for startups and growth stages. Super Angels. 20 billion.

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The 10 Best Sources of Cash to Start Your Business

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Use this approach before you have a real valuation, a real product, or any real customers. Venture capital. An investment from a venture capital firm is usually expensive, in equity and control. Just don’t quit your day job before your new company is producing revenue. Friends and family.