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How to Talk About Valuation When a VC Asks

Both Sides of the Table

I thought I’d write a post about how to talk about valuation at a startup and give you some sense of what might be on the mind of the person considering funding you. It’s not uncommon for a VC to ask you how much capital you’ve raised and what the post-money valuation was on your last round. is to start with just the data.

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Virgin Galactic Shares Fall: How You Can Increase Your Business’s Market Valuation

The Startup Magazine

In fact, the announcement of the share issue led to a decline in Galactic share prices and overall market valuation. Below are tips on how you can boost growth and increase your business’s market valuation. Spotting new trends ahead of your competitors is an excellent way to increase your market valuation.

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Worked Up about Unrealistic Venture Capital Valuation

Growthink Blog

Specifically, the guy who wrote me this email. I received an email last week from an entrepreneur (let's call him Mike) Now to begin, I was pretty impressed with Mike since he used a nice technique to get his email in my inbox (due to the volume of emails I receive, they are screened by others before they get to me).

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How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

Every VC knows that the amount you raise is often a proxy for your valuation. So when you say $8–10m is your goal and you aren’t at all thinking about your valuation know that a VC hears “$24–40 million pre-money valuation expectations.” In the next post I’ll give some advice on how to talk about valuation when a VC asks.

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Don’t get hung up on early stage valuation.

Berkonomics

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up pre-money valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road. Why fight about valuation, or disappoint the founder at the outset?

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

The bridge or exit stage is generally of very large transactions and for companies with substantial valuation. The essential components of your pitch include a comprehensive business plan with projections of 5 years along with investment offerings and estimated valuations. Point number 3: Never raise money with an increased valuation.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.