Startup Professionals Musings

NOVEMBER 26, 2012

So what magic can the founders use to justify a $4M valuation (or even the $1M valuation) at this early stage? NewCo is projecting revenues of $25M in five years, even with a 40% discount rate, the NPV or current valuation comes out to about $3M. This is the most concrete valuation element, usually called the asset approach.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

SoCal CTO

MAY 19, 2010

I guess I’m wondering why early stage investment isn’t aiming at these kinds of investments? The largest number of exit transactions today are in the under $30-million valuation range. These exits are often completed when companies are only two or three years from startup.

Hockey Stick 205

Hockey Stick NPV IRR Valuation 205

Startup Professionals Musings

SEPTEMBER 30, 2011

So what magic can the founders use to justify a $4M valuation (or even the $1M valuation) at this early stage? NewCo is projecting revenues of $25M in five years, even with a 40% discount rate, the NPV or current valuation comes out to about $3M. This is the most concrete valuation element, usually called the asset approach.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Gust

NOVEMBER 18, 2012

So what magic can the founders use to justify a $4M valuation (or even the $1M valuation) at this early stage? NewCo is projecting revenues of $25M in five years, even with a 40% discount rate, the NPV or current valuation comes out to about $3M. This is the most concrete valuation element, usually called the asset approach.

Valuation 187

Valuation Pre-Money Valuation NPV Startup 187

Startup Professionals Musings

SEPTEMBER 6, 2010

So what magic can the founders use to justify a $4M valuation (or even the $1M valuation) at this early stage? NewCo is projecting revenues of $25M in five years, even with a 40% discount rate, the NPV or current valuation comes out to about $3M. This is the most concrete valuation element, usually called the asset approach.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234