article thumbnail

How to value your company for sale (Part 1)

A Smart Bear: Startups and Marketing for Geeks

I recently helped a friend broker the sale of his small, bootstrapped company. This is a smart guy with experience and a logical approach to such things, but the way he was initially trying to value his company was not only wrong, but the wrong way to think about the entire sale. To stoke an existing sales channel.

Sales 260
article thumbnail

What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

it is also the title of a fabulous book from Internet 1.0 Gross margin (GM) is the amount of profit you make per sale of your product or service taking into account your total costs of selling that product or service. Valuation. I wanted to call out special attention to valuation in this debate.

Burn Rate 383
Insiders

Sign Up for our Newsletter

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

article thumbnail

10 Rules of Thumb for Startup Investment Valuation

Startup Professionals Musings

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.

Valuation 270
article thumbnail

Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

article thumbnail

4 In Demand Products During This Time Of Pandemic

YoungUpstarts

estimates in their recent report that medical products will have a very high global market valuation, crossing 30 billion US dollars by 2026. All these things are possible because a smart TV can be connected to Wi-Fi or any Internet source to access certain apps, like YouTube and Netflix.

Demand 173
article thumbnail

Everything You Ever Wanted to Know about Marketing Communications

Steve Blank

My engineers say our website is old school, and we need to be on Facebook, Twitter and Instagram, my VP of Sales says we’re wasting our marketing dollars not targeting the right people and my board keeps giving me their opinions of how we should describe our product and company. How do I sort out what to do?”. with a strategy. Step 3: Media.

Marketing 316
article thumbnail

Innovation, Change and the Rest of Your Life

Steve Blank

I’ve watched the Valley go from Microwave Valley – to Defense Valley – to Silicon Valley to Internet Valley. the wave of semiconductor startups in the 1960’s/70’s, the emergence of Venture Capital as a professional industry, the personal computer revolution in 1980’s, the rise of the Internet in the 1990’s and finally.

Restful 243