Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 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.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Both Sides of the Table

MAY 28, 2018

There are many things a VC is looking for in reviewing your business plan but beyond things the like the quality of revenue, margins, OPEX and CAPEX there’s a really simple rule I call, “Cash In, Cash Out, Milestones Achieved.” So it’s incumbent on you to know what a smart business plan and use of cash looks like.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model. An average of these ranges results in a pre-money valuation of about $4MM. stake in the company.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Business Plan Blog

DECEMBER 26, 2013

This process may include the provision of various scenarios on revenues and costs as the investors validate forecasts initially presented. Pre-money valuation. The term sheet is a legally binding document and should include the following elements: - Offer terms, such as: Company, founder and investor details.

Angel Investor 51

Angel Investor Due Diligence Pre-Money Valuation Angel Groups 51

www.paulgraham.com

OCTOBER 23, 2010

Some angels, especially those with technology backgrounds, may be satisfied with a demo and a verbal description of what you plan to do. But many will want a copy of your business plan, if only toremind themselves what they invested in. Ididnt realize that when we were raising money. This money isnt revenue.

Startup 105

Startup Cofounder Software Stock 105

www.paulgraham.com

APRIL 28, 2010

This is a good plan for someone with kids, because it takes mostof the risk out of starting a startup. There never has to be atime when you have no revenues. Risk and reward are usuallyproportionate, however: you should expect a plan that cuts the riskof starting a startup also to cut the average return.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

dondodge.typepad.com

JANUARY 15, 2011

So they will give you a pre-money valuation somewhere around the amount you raise. Sounds strange, but it usually works out that if you are raising $2M the VCs will value your company at $2M pre-money, and $4M post money so they end up with 50% of the stock. Venture Capital investing is extremely risky.

Equity 40

Equity Employee Dilution Valuation 40