When In Doubt on Pre-Money Valuation, Smart Guys Procrastinate
Recent Buzzes - VC Experts, Inc.
AUGUST 2, 2011
If there simply is no way to get a handle on the pre-money valuation in an angel round, the trick is to postpone the valuation/pricing decision until a future event. Typically this event is the first professional (some times called the Series A) round of financing, when the company is more mature. At this point, professional VCs are investing and perhaps competing to invest, in which case the price is fairly established by definition through an informal auction