article thumbnail

Web-Based Worthworm Helps Determine PMV For Startup Investment Purposes

YoungUpstarts

“The reality is that there has not been a reliable, simple, or cost-effective way to calculate an early stage company’s valuation – which is why so many entrepreneurs and angel investors get it wrong,” says Alan Lobock, co-founder of Worthworm. ” Ideaspotting investment pre-money valuation valuation Worthworm'

article thumbnail

Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

Obviously most of these employees are working hard primarily for equity upside compensation, but Kayak’s personnel costs are roughly $200K/head so the company is highly productive on a per employee basis. Pre-IPO Funding History: Kayak has raised approximately $235M in VC funding to date. Pre-money valuation was approx.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How to Fund Your Startup Without Losing Control

Up and Running

That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record. That is to say, they’d want to be able to control costs and revenues at a high level.

article thumbnail

Equity for Early Employees in Early Stage Startups

SoCal CTO

Suppose further that he's going to cost $60k a year in salary and overhead, x 1.5 = $90k total. If the company's valuation is $2 million, $90k is 4.5%. Of course, to be able to use this kind of formula, you will need to be able to determine how much impact the person will have and figure out a valuation. and we have 11.1%

article thumbnail

The Changing Structure of the VC Industry

Both Sides of the Table

Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. We’re all socially connected (so great businesses spread faster).

article thumbnail

3 Economic Rules Every Crypto Start Up Must Obey

Austin Startup

Our pre-money valuation for the seed round is 2 trillion dollars.” In 1937 (yeah, it takes that long to win the Nobel prize), Coase wrote a paper called the Nature of the Firm that revealed the fact that transaction costs are almost always material and do shape economic transactions. Why does this matter to crypto?

article thumbnail

Shark Tank Season 4 week 7 breakdown

Lightspeed Venture Partners

The company sought to raise $125,000 for 25% of the comapny, implying a $375,000 pre money valuation. Unsurprisingly, all the sharks passed, based on market size and valuation expectations. The SBU retails for $1,800 and costs $250 to make in an offshore factory.