Gust

OCTOBER 18, 2011

This is the first of a six part series on different methods used by angel investors to arrive at pre-money startup valuations. It is one of the most useful methods for establishing the pre-money valuation of pre-revenue startup ventures. Return on Investment (ROI) = Terminal (or Harvest) Value ÷ Post-money Valuation. (in

Valuation 174

Valuation Pre-Money Valuation Southern California Post-Money Valuation 174

NZ Entrepreneur

MAY 31, 2021

Andrew Chen shares his takeaways from the second instalment on Portfolio Management, held in Wellington on 13 May 2021. Participants heard about both the theory and reality of portfolio management from three different experiences: Marcel van den Assum provided the angel investor perspective, having invested in over 50 companies over 15 years.

Portfolio 81

Portfolio New Zealand Management Technical Review 81

Gust

NOVEMBER 15, 2011

The Risk Factor Summation Method the fifth methodology for estimating the pre-money valuation of pre-revenue companies we have described in recent posts. Readers may have noted that both the Scorecard Method and the Dave Berkus Method considered a narrow set of important criteria for investment in arriving at a pre-money valuation.

Valuation 102

Valuation Pre-Money Valuation Ohio Early Stage 102

Both Sides of the Table

MAY 30, 2018

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.

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

The Startup Magazine

AUGUST 11, 2023

As a result of the fact that the typical business being evaluated by seed-stage investors needs a substantial amount of sales data or experience to draw on, seed-stage investors will consider the expected growth trajectory and existing track record, management, market share, and dangers. What is the Evaluation of the Funding?

Seed Stage 126

Seed Stage Technical Review Early Stage Due Diligence 126

Startup Professionals Musings

DECEMBER 30, 2022

Every business owner and entrepreneur I meet in my consulting rounds dreams of finding that “ disruptive ” innovation that will supercharge their business and move it into the ranks of business unicorns (billion-dollar valuations), such as SpaceX and Apple. If you can’t measure it, you can’t manage it.

Technical Review 252

Technical Review Silicon Valley Software Review Metrics 252

Startup Professionals Musings

AUGUST 19, 2020

Don’t wait until you are almost out of cash before managing every dollar spent, or looking for the next refueling from investors. As a mentor to many entrepreneurs and startups, here are my best recommendations for keeping the burn rate low, planning ahead and maintaining credibility with investors: Manage cash flow personally every day.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Gust

NOVEMBER 2, 2011

We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. Dave’s valuation model first appeared in a book published by Harvard’s Howard Stevenson in the middle nineties. Add to Pre-money Valuation. Characteristic.

Valuation 79

Valuation Pre-Money Valuation Intellectual Property Southern California 79

Startup Professionals Musings

SEPTEMBER 16, 2023

Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)? Set milestones and manage to those targets. But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever.

Intellectual Property 261

Intellectual Property Entrepreneur Angel Groups Social Media 261

Both Sides of the Table

JUNE 30, 2016

How much you raise determines valuation I know it sounds crazy but at the earliest stages of a company your valuation often is determined by how much money you raise. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it? But people never do. Justin is right. But it’s actually not that silly.

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

The Startup Magazine

JULY 25, 2021

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.

Valuation 162

Valuation Artificial Inteligence Dilution Marketing 162

The Startup Magazine

SEPTEMBER 10, 2020

For companies that manage a large amount of content, a translation management system is essential. More than likely, there’s no translation management system (TMS) that’s perfect for your company. To learn how smart businesses choose the best translation management systems, read on. Workflow management.

Management 109

Management Non-Compete Technical Support Software 109

The Startup Magazine

APRIL 19, 2024

Fleet management is a crucial aspect of many businesses, especially in transportation, delivery, and logistics. While managing a fleet of vehicles helps streamline operations and improve efficiency, it can also result in significant expenses. As per GlobeNewswire , the fleet management software market was valued at $22.38

Cost 149

Cost Management Massachusetts Acquisition 149

Startup Professionals Musings

JUNE 11, 2022

An example would be getting free office space by agreeing to be the property manager for the owner. Some nonprofit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy. Bartering services.

Angel Investor 327

Angel Investor Equity Technical Review Exit Strategy 327

YoungUpstarts

OCTOBER 24, 2017

Zyla, managing director of Acuitas, Inc., You should also understand that you may be liable for certain acts or omissions as a manager, officer or director, but shielded from liability as a member (in a manager-managed LLC) or shareholder. Plan for your company’s eventual valuation. Congratulations!

Partner 208

Partner Technical Review Intellectual Property Due Diligence 208

YoungUpstarts

NOVEMBER 19, 2020

People refers to the management and employees that are currently employed by the business. Committed employees and tenured management teams can act as a value driver as they are directly involved with the direction and growth of your company. That being said, it makes sense that when business is booming, your valuation will be higher.

Exit Strategy 246

Exit Strategy Intellectual Property Valuation Metrics 246

Startup Professionals Musings

MARCH 22, 2020

Cohen and John Kador, in their classic book “ What Every Angel Investor Wants You to Know ,” includes these great points of practical advice on this subject: Manage expectations before the fact. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages.

Management 308

Management Cram Down Angel Investor Equity 308

The Startup Magazine

JANUARY 14, 2020

Higher asset valuation – growing awareness about the environment; the social impact of buildings and the need to meet sustainability credentials is increasingly making real estate investors and occupiers turn to green buildings. The environmental issues include climate change adaptation and water, waste and energy management.

Green 138

Green California Government Valuation 138

Startup Professionals Musings

NOVEMBER 28, 2020

Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)? Set milestones and manage to those targets. But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever.

Intellectual Property 404

Intellectual Property Startup Angel Groups Social Media 404

David Teten

SEPTEMBER 6, 2018

Over the past decade, I’ve (somewhat accidentally) put together on this blog a syllabus on how to launch, manage, and invest a VC fund. For example, we created a pipeline management tool that automatically adds deals along with relevant information (such as attachments received) to our funnel. 5) Manage deal flow.

Technical Review 60

Technical Review Private Equity Management Cap Table 60

David Teten

SEPTEMBER 6, 2018

Over the past decade, I’ve (somewhat accidentally) put together on this blog a syllabus on how to launch, manage, and invest a VC fund. For example, we created a pipeline management tool that automatically adds deals along with relevant information (such as attachments received) to our funnel. 5) Manage deal flow.

Technical Review 60

Technical Review Private Equity Management Cap Table 60

The Startup Magazine

FEBRUARY 21, 2024

As an investor, these experiences have honed my ability to see beyond spreadsheets and valuations, to the core of what makes businesses thrive: the people, the vision, and the relentless pursuit of excellence. The increasing inflow of capital into private credit necessitates rigorous underwriting standards and disciplined risk management.

Technical Review 133

Technical Review Due Diligence Bankruptcy Intellectual Property 133

Startup Professionals Musings

NOVEMBER 26, 2012

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?” The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Both Sides of the Table

SEPTEMBER 28, 2014

But the biggest thing to know is this: Companies who are scaling quickly in revenue and with a high gross margin often should invest as much capital in growth as they can manage responsibly because when you find a product / market fit and your company is growing at a very fast scale you want to capture market share before competition sets in.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

VC Cafe

FEBRUARY 27, 2023

By contrast, they backed 620 funds in the last three months of 2021 First time fund managers hit hard: In 2022, limited partners backed 141 funds run by first-time managers, a 59% decline from the prior year and the lowest number since 2013 How does the constrained LP environment manifest for funds and startups?

Venture Capital 215

Venture Capital Technical Review LP Institutional Investors 215

Gust

JUNE 22, 2016

Gust announces acquisitions of Sharewave and Preferred Return; creates the most robust and affordable equity management solution for early-stage startups. The post Gust Launches Comprehensive Equity Management Platform for Cap Table Management and 409A Valuations appeared first on The Gust Blog. Read more >.

Cap Table 93

Cap Table Valuation Equity Management 93

ReadWriteStart

JUNE 1, 2020

Under this category, you have the angel investors who would invest their own money and Venture Capital or VC firms, who manage funds aimed towards specific startup sectors and stages. The bridge or exit stage is generally of very large transactions and for companies with substantial valuation. Debt investors. Bridge or exit stage.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

SEPTEMBER 29, 2018

Don’t wait until you are almost out of cash before managing every dollar spent, or looking for the next refueling from investors. As a mentor to many entrepreneurs and startups, here are my best recommendations for keeping the burn rate low, planning ahead and maintaining credibility with investors: Manage cash flow personally every day.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Both Sides of the Table

JULY 23, 2014

We are in a bubble (with so many private $1bn+ valuations). pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. 15 years ago we were at the peak of Internet hype with the launch of many over-capitalized businesses with a market size & opportunity was limited.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

YoungUpstarts

MARCH 14, 2016

There are many reasons why you need a current valuation of your business and many business owners assume that it is only necessary when selling but actually, this is not the case. Business valuations and wealth management. A shareholder, employee share ownership plan or management buyout may be credible options in many cases.

Valuation 100

Valuation Sales Employee Management 100

ReadWriteStart

OCTOBER 7, 2010

As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I Sub-$2 million pre-money, it is better to bootstrap. Igor did not have an answer.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

The Startup Magazine

DECEMBER 7, 2023

The relevance of strategic risk management becomes paramount. Engaging with risk management companies has emerged as a trusted approach for financial institutions to safeguard themselves against the inherent challenges of the sector. Risk management consultancy plays a crucial role here.

Security 136

Security Management Forecast Finance 136

Startup Professionals Musings

NOVEMBER 4, 2015

In a new book, “ The Leadership Capital Index ,” Dave Ulrich, a best-selling author, business consultant, and business school professor, provides some real insights and metrics on what makes up the elements of goodwill in the minds of top valuation experts. Modern information management tools. People relationship focus.

Leadership 120

Leadership Technical Review Due Diligence Valuation 120

YoungUpstarts

APRIL 12, 2019

Use one of two business valuation formulas. The second, so-called market approach of valuation assumes considering the probable cost which could be paid for your business by the potential buyer. Please pay attention to the fact, that the date of the valuation is significant for the results of your property division.

Small Business 113

Small Business Valuation .Net Balance Sheet 113

The Startup Magazine

MARCH 14, 2022

Profitably managing and owning businesses with all the inherent risks have always defined the Indian entrepreneurial spirit. 5) Managing the operations. Here, the company’s valuation benchmark is set, and funding is solicited accordingly. And this has been the way of life here in India. 4) Forming a company identity.

Technical Review 145

Technical Review Due Diligence India Startup 145

Tim Keane

JANUARY 12, 2010

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.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Steve Blank

NOVEMBER 2, 2021

Andrew Inkpen, “ The Global Semiconductor Industry ” Thunderbird School of Management , 2021. [It We discussed whether 1) that was true or just anecdotal 2) if true, was it the same in other research universities, 3) why it happened (software startups are getting funded at obscene valuations)? Semiconductor Case Study.

Technical Review 366

Technical Review Taiwan Technology Artificial Inteligence 366