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Valuations 101: Scorecard Valuation Methodology

Gust

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures. The range of the data is from a low pre-money valuation of $0.8

5 Reasons Startups Need Revenue As Well As Users

Startup Professionals Musings

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked. Martin Zwilling.

10 Rules of Thumb for Startup Investment Valuation

Gust

How much is NewCo worth to investors at this point (pre-money valuation)? NewCo might be able to pick up an initial $50K valuation on this item.

Non Recurring Revenue Businesses

Rob Go

I’ve been thinking a little about non-recurring revenue businesses. Non-recurring revenue businesses might consume less cash to grow.

Startup Valuation: How Much Is Your Company Worth?

Seed Stage Capital

skip to main | skip to sidebar 19 January 2010 Startup Valuation: How Much Is Your Company Worth? They dazzle. It is analogous to a make-vs.-buy

How Investors Think About Valuation of Pre-Revenue Startups

SoCal CTO

Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. Bill Payne is an expert on how early-stage investors should look at valuation. He just post: Establishing the Pre-money Valuation of Pre-revenue Startups. What are they really looking for? is a requirement.

Recurring Revenue is Magic

Seeing Both Sides

As a result, the full revenue for each deal was recognized in that quarter as soon as the software was shipped. Valuation. Visibility.

2012 Valuation Survey of Angel Groups

Gust

This summer I conducted our third annual survey of the pre-money valuation of pre-revenue companies recently funded by angel groups in North America. Access to our 2010 and 2011 surveys can be found at 2011 Valuation Survey of North American Angel Investor Groups. Pre-revenue life Science, biotech and medical device deals.

What Startups Need To Know About Business Valuation

YoungUpstarts

This is where a qualified business valuation professional comes in – he or she can determine the fair market value of the underlying stock.

A Bubble for Seed Stage Valuation

Angel Investing News

When entrepreneurs raise equity capital for startup companies, the investors’ percentage of ownership is determined by the negotiated valuation for the company at the time of investment. For example, if the negotiated pre-money valuation is $1.5 the valuation of the company increases. million ÷ ($1.5 million + $0.5 million)].

How we determine valuations for marketplaces

Version One Ventures

I often get asked about how to determine the valuation for a marketplace startup that is starting to scale. YoY growth of at least 30%.

Demystifying Small Business Valuation

Fresh Inc.: The Staff Blog

A successful small business sale begins with a solid grasp of business valuation. Period. There can be a large variance in multipliers (e.g.

2011 Valuation Survey of North American Angel Groups

Angel Investing News

During the summer of 2010, I developed a workshop, A New ACEF Valuation Workshop for Angels and Entrepreneurs. To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies. Valuation. Location.

Valuation Methods 101

Gust

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

How To Compute The Valuation of Your Startup

FairSoftware's Blog

Startup valuation is a misunderstood and complex topic. How fast has your revenue been growing so far? What about the dotted line?

Snapchat and that old no revenues debate

Fred Destin

Grown-up warnings about how real businesses have real revenues were yet again littering my twitter feed in recent weeks. Humongous scale.

Revenue exceptionalism vs margin exceptionalism

Chris Dixon

Three years ago, Fred Wilson wrote a great blog post called When Talking About Business Models, Remember that Profits Equal Revenues Minus Costs. Most recent successful tech companies seem to have chosen the former: growing revenues at the expense of margins. Fast revenue growth seems to be the best way to justify your valuation.

2011 Valuation Survey of North American Angel Groups

Gust

During the summer of 2010, I developed a workshop, A New ACEF Valuation Workshop for Angels and Entrepreneurs. To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies. Valuation. Location.

8 things to consider when determining your startup valuation

The Next Web

Setting a valuation for an early-stage startup looking to raise money is tough. In regards to your market? Young Entrepreneur Council

A Five-Minute Tutorial On How To Value Your Startup

Startup Professionals Musings

Equally bad is professing no valuation estimate at all, asking investors to “make me an offer.” reveneue Shark Tank startup valuation

Startups With Real Revenue Can Get Venture Capital

Startup Professionals Musings

Your friends and family are really the only answer until you have a significant revenue stream. Overall, investors put $7.5 startups.

Why Facebook Clearly Belongs in the 10X Revenue Club

abovethecrowd.com

Attached are my thoughts on the Facebook S-1 along with some quick stabs at valuation. Brief disclosure, Benchmark Capital has a minority position in Facebook as a result of the acquisition of FriendFeed, a company that was incubated in our offices. I thought it would be useful to look at Facebook using the scorecard from our [.].

Startup Valuations – Again….

ithacaVC

I have written about startup valuations previously. If you are advising startup founders, I strongly suggest having them read all 4 of the posts to get the lay of the startup valuation land. There’s a reason it’s so difficult to figure out – valuations have little basis in reality for early stage companies. Revenue.

Revenue benchmark for Series A – $1m run-rate and 20% MoM growth

The Equity Kicker

the ecommerce companies or software companies that we invest in) and you have a $1m revenue run rate and 20%+ month-on month growth you will generally be in good shape. Companies with greater revenues and stronger growth are able to raise bigger rounds at higher valuations. For Forward Partners that means an exit of £100m+.

Can Twitter Justify Its $11 Billion Valuation?

Fresh Inc.: The Staff Blog

It does have fast-growing revenue: According to its filings with the U.S. Nearly 90 percent of that revenue came from advertising.

After 20 years: Updating the Berkus Method of valuation

Berkonomics

There is a universal truth: fewer than one in a thousand start-ups meet or exceed their projected revenues in the periods planned. Ignition!

The Trap of Relative Value

Feld Thoughts

He’d gotten a random note asking about his valuation when we invested relative to another financing that was just announced. The other company, which was much smaller at the point of investment, got an 11x ARR valuation. My response to the specific situation was: Valuations have increased on a relative basis.

Stock 87

Join The Unicorn Club Of Billion-Dollar Companies

Startup Professionals Musings

If your new venture is still in the idea or development stages, don’t even think about a high valuation. These are popularly called “unicorns.”

Deals Gone WIld (aka "What Drives Massive Startup Valuations?")

Seed Stage Capital

skip to main | skip to sidebar 11 January 2011 Deals Gone WIld (aka "What Drives Massive Startup Valuations?") But what about the outliers?

The Profit Imperative

Seth Levine's VC Adventure

Valuations are Down. In the public markets public SaaS valuations (EV/Revenue) are down 33% since January and 66% since their high in January 2014. Venture Economics bubble bubble bursting current market conditions startup valuations valuationsGrowing Profitably. ”). But they do, and they are right now.

Investors Beware: Today’s $100M+ Late-stage Private Rounds Are Very Different from an IPO

abovethecrowd.com

An unprecedented 80 private companies have raised financings at valuations over $1B in the last few years. Consider the case of Fab.com.

IPO 62

How Technology Impacts Small Business Valuations and Sale Prices

Fresh Inc.: The Staff Blog

Beyond revenues and profits, small businesses' IT aptitude will start playing a larger role in building value and attracting buyers

Dharmesh Shah – Valuation, Competition, Porter’s Five Forces and Culture

Business of Software Blog

Valuation. Valuation vs. Value. Valuation: What someone is willing to pay for the company at a given time. Your Company. Scale.

Worked Up about Unrealistic Venture Capital Valuation

Growthink Blog

So, Mike tells me he wants to raise a first round of venture capital based on a $100 million valuation. Getting a $100 Million valuation is impossible for a startup. In fact, getting above a $10 Million valuation is also virtually impossible unless you have at least some traction (e.g., Maybe you have $1 million in revenues.

NDA 14

Box: Strong on Revenues (Weak on Profits) Files IPO

Fresh Inc.: The Staff Blog

The cloud-storage company has strong revenue growth, but no profits. Box''s revenue growth, however, has been strong. In 2013, Inc.

Facebook, Twitter, & startup valuations - The best properties always look too expensive

Don Dodge on The Next Big Thing

The experts thought Microsoft was crazy when they invested $240M in Facebook at a $15B valuation. Digital Sky Technologies invested $200M in Facebook in May of 2010 at a $10B valuation. Just 7 months later Goldman Sachs is investing $500M at a $50B valuation. Market valuations are asymmetric. Crazy like a fox.

Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

Advising investors, I would advocate for traditional convertible notes (with a valuation cap) over this new structure. Equity?

Valuations 101: The Dave Berkus Method

Gust

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. Zero to $0.5

Don't Flub Your Billion Dollar Valuation

Fresh Inc.: The Staff Blog

Recent valuations driven by a red-hot venture capital investment scene are eye-popping, but you need to justify your value. That in turn often drives those companies'' valuations into the billion-dollar stratosphere. Nearly forty companies have received billion-dollar valuations in the past couple of years. as of mid-day Monda

Hugh opportunities do NOT command amazing pre-money valuations.

Berkonomics

Dave’s note: Popular Bill Payne returns this week with a thoughtful take on valuations. By Bill Payne. million. Ignition!