The Next Web

FEBRUARY 27, 2014

George Deeb is the Managing Partner at Chicago-based Red Rocket Ventures , a startup consulting and financial advisory firm based in Chicago. One of the questions I get, more often than not, is what is the appropriate valuation of my business. This is typically in conjunction with an upcoming financing or pending takeover offer.

Valuation 167

Valuation Forecast Seed Stage .Net 167

The Equity Kicker

DECEMBER 2, 2015

Mahesh Vellanki from Redpoint put up an interesting post yesterday about ecommerce valuations. revenues because growth is much lower – forecast at 5-7% next year, and their EBITDA margin is 8%. As you can see from the chart above, in Mahesh’s sample most of the companies have revenue multiples in the 1-2x range.

Forecast 60

Forecast eCommerce Net Present Value Revenue 60

YoungUpstarts

MAY 17, 2019

In today’s sexy startup culture, buying an existing business has lost its vogue. But every year thousands of entrepreneurs become millionaires by buying and growing businesses without the startup headaches of venture capitalists, zero revenue, and no business processes.

Due Diligence 185

Due Diligence Forecast Deal Structure Valuation 185

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. In all these cases, capital is provided to fuel forecasted growth without creating a commitment to a particular vision for future funding rounds, exit goals, and associated blitzscaling. Yes, via conversion rights at a valuation cap.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

www.entrepreneur.com

SEPTEMBER 22, 2011

Entrepreneur Homepage Startups Starting a Business Home How-To Guides Startup Basics Business Ideas Business Planning Startup Financing Success Stories Home-Based Business Starting a Business Play Video How to Take a New Product from Just an Idea to a Business (Video). Startup Basics Does College Matter for Entrepreneurs?

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

Startup Professionals Musings

SEPTEMBER 30, 2011

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

www.mint.com

MARCH 9, 2010

If you are considering working at a startup, you should ask these questions. If the answer to the question centers around “We will achieve revenue soon so our net will improve and give us more runway,” it means the company is in trouble because no product ever ships on time nor achieves the company’s “conservative forecast.”

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

ReadWriteStart

JANUARY 28, 2022

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. Why do startups issue company equity? You have a financial stake in a startup if you have equity.

Valuation 108

Valuation Equity Warrant Common Stock 108

genylabs.typepad.com

SEPTEMBER 24, 2011

Tracking and Forecasting the Trends Impacting the Future of Small Business. Planning, Startups, Stories. I wont bother going into details on start-up financing terms ( see this post for an overview of typical VC terms) except to say if you dont know and understand: the firms cap table and valuation. Small Business Labs.

Equity 40

Equity Technical Review San Jose Stock 40

Ben's Blog

AUGUST 17, 2020

OH in South Park, San Francisco (or on Zoom from Big Sky, Montana): “OMG, crazy – that firm just paid 100x revenue to invest in [insert hot startup here] – what could they be thinking?” How valuation multiples work Why did multiples become a shortcut-heuristic for estimating valuations in the first place?

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

Steve Blank

APRIL 1, 2020

So here’s a five-day playbook to help CEOs of cash-flow negative startups, or ones about to go negative, assess the new normal and respond with speed and urgency. For companies burning cash, such as startups, how much cash do you have? Forecasted recovery date. Sales pipeline/forecast. For startups: source of VC money?

South Korea 334

South Korea Salary Business Model China 334

Austin Startup

SEPTEMBER 17, 2017

Startups provide both the luxury and the risk of having very little data on which to base the important early decisions. Further, you demonstrate on your spreadsheet that a venture return to early investors is plausible at a valuation that gives you enough equity to get the job done and to take care of you and your team at exit time.

Valuation 48

Valuation Forecast Seed Money Business Model 48

Up and Running

DECEMBER 18, 2018

For one thing, when you purchase an existing company, someone else has probably already done a lot of the startup legwork, like verifying that there’s a market for your product or service, establishing a customer base, hiring employees, and negotiating a lease. Do due diligence on the business’s history and finances.

Due Diligence 71

Due Diligence Intellectual Property Balance Sheet Forecast 71

Both Sides of the Table

OCTOBER 1, 2009

There have also been many high profile financings of infrastructure players to support these gaming platforms including Offerpal Media, SuperRewards (bought by AdKnowledge), Gambit and more recently LA-based Sometrics. To be clear, I don’t have a crystal ball that forecasts the future or I’d quit my VC job and purely be a day trader.

IPO 255

IPO Investment Bankers Venture Capital Marketing 255

Both Sides of the Table

FEBRUARY 14, 2016

Valuing any company can be difficult because it requires a degree of forecasting future growth & competition and ultimately the profits of the organization. I have been talking about my concerns about valuations for the past couple of years because, well, they’ve been rising very rapidly the past two years!

Valuation 150

Valuation Down Round Startup Later Stage 150

Up and Running

OCTOBER 3, 2018

Set a specific time each month to review it , comparing forecasts to actuals and revising as necessary. Consider this example: Pleasant Acres Real Estate, LLC (PARE) is a startup company located in El Paso, Texas. Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company.

El Paso 61

El Paso Business Plan Technical Review Forecast 61

Hearpreneur

SEPTEMBER 21, 2018

1- The Forecast Podcast. The Forecast Podcast from Ahmad Munawar at Boutique Growth has great format and guests (I don’t just say that because I was a guest– I was already a fan). They’re a mix of finance news and deep dives into specific FinTech topics, and the guests they get are just incredible.

Entrepreneur 74

Entrepreneur Hosting Cofounder Forecast 74

Both Sides of the Table

MARCH 30, 2016

If you want to see what was on my mind – I started foreshadowing change publicly in October 2015 with a forecast of what I expected in 2016 VC funding markets at a presentation I gave at the annual Cendana VC/LP conference hosted by Michael Kim. SaaS valuations had completely reverted to the mean and were now trading at 4.2x

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

www.currentlyobsessed.com

MAY 28, 2010

Valuation is an important aspect of VC deal terms, and a major determinant of your ultimate outcome. I unexpectedly found that it was more helpful to think about the company valuation as an output variable in the fund-raising equation. The net effect was more money raised, higher valuation and the same percentage of equity sold.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

Up and Running

MAY 15, 2019

In this guide to starting a brewery, we’re going to talk with brewers who’ve been-there-done-that, and we’ll get insights from experts in supporting industries such as insurance and finance, as well as discuss regulatory issues. No matter its size or age, every brewery was once a startup. Watch your finances.

Oregon 24

Oregon Jordan Software Review Distribution 24

David Teten

NOVEMBER 15, 2013

Each new investor tends to raise valuations and lower returns for all the other competitive investors. This is the psychology that drives VCs to load up a company with more capital, rationalizing that $5m at a $20m pre-money valuation is little different than $10m at a $40m pre-money valuation.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

Up and Running

DECEMBER 9, 2014

Bates: Good morning and welcome to our CEO panel, “How to Fine-Tune Your Small Business Finances From Funding to Growth” which I think is the direction that we would all like to be going. I’m here with some really phenomenal CEOs who are going to talk to us today about small business finances from funding to growth.

Small Business 95

Small Business Finance Forecast Metrics 95

Austin Startup

AUGUST 25, 2017

For our full analysis and valuation, please download this PDF. Several different studies ( Link 1 , Link 2 , Link 3 ) have demonstrated the superiority of prediction markets over traditional means of event forecasting. Multicoin Capital is based in Austin, TX.

Forecast 69

Forecast Government Valuation Global 69

Ben's Blog

MAY 24, 2021

So, even assuming they wanted to raise the same amount of nominal dollars at the IPO as in the past, a higher valuation means they can do so by issuing many fewer shares. The SEC’s Director of the Division of Corporate Finance recently provided some guidance raising questions about the extent of PSLRA coverage.

SEC 36

SEC Accredited Investor IPO Technical Review 36

VC Cafe

JULY 20, 2010

Only 14% believe that the Treasury should encourage mature Israeli companies to acquire Israeli startups. 13% of respondents believe this gap to be in Mezzanine financing and no venture capitalist believes that there is no investment gap. 77% of venture capitalists believe the gap is in Seed and First Round. fund raising in Israel.

Mezzanine 92

Mezzanine Venture Capital IPO 92