SoCal CTO

MAY 19, 2010

In his recent post, Top 10 Ways to Win a Business Plan Competition , he says: #4 I wanted to push this further down the list, but I just bristle at this: the revenue forecast. Remember my day job, I'm past Chairman of the Tech Coast Angels and I see a lot of pitches with revenue forecasts. These are so detached from reality.

Hockey Stick 205

Hockey Stick NPV IRR Valuation 205

Startup Professionals Musings

NOVEMBER 26, 2012

Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast. 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 one doesn’t help NewCo just yet.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Startup Professionals Musings

SEPTEMBER 30, 2011

Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast. 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 one doesn’t help NewCo just yet.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Gust

NOVEMBER 18, 2012

Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast. 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 one doesn’t help NewCo just yet.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Startup Professionals Musings

SEPTEMBER 6, 2010

Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast. 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 one doesn’t help NewCo just yet.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Rob Go

MAY 26, 2016

The first is practical and real – it’s hard to forecast and plan expenses when revenue might swing significantly. The assumption here is that that increased value is NPV positive based on other potential uses of the capital that you could have gotten up front. That is not good.

Revenue 53

Revenue NPV Valuation Forecast 53