I often get asked about how to determine the valuation for a marketplace startup that is starting to scale. Our assumptions for this valuation: Scale: > $1b GMV. The post How we determine valuations for marketplaces appeared first on Version One. MORE
Venturebeat reported yesterday that US startup valuations have reached ten year highs. You can see from the charts above that median valuations have been increasing at all stages from seed through to Series D or later. MORE
This summer I conducted our third annual survey of the pre-money valuation of pre-revenue companies recently funded by angel groups in North America. Access to our 2010 and 2011 surveys can be found at 2011 Valuation Survey of North American Angel Investor Groups. We asked each group for their median (middle) pre-money valuation of pre-revenue deals. 2012 Valuation Survey. pre-money valuation in US$ millions). MORE
I just listened to this podcast with Marc Andreessen, Chris Dixon, and Benedict Evans. And since the post I was going to write today is now delayed until tomorrow, I will simply run the podcast as my post of the day. Lot’s of great stuff in here. I particularly liked the bit (about 17.5 MORE
A few of them have done good up rounds and the easiest way to describe the magnitude is to talk about the valuation multiple. As a refresher, the post-money valuation is calculated as the pre-money valuation plus the amount of money invested.). MORE
When I speak to most founders and investors about financings, we focus on valuation. And when we think of valuation, the other side of the coin is dilution. For any fixed invested amount, the higher the valuation, the lower the dilution. Investors and founders can get fixated on this tradeoff of valuation vs. dilution. valuation/dilution), it’s better to ask questions like, “for X% of the company, what is the investor going to do to justify that ownership?” MORE
Valuation. What you may not know is that it really does matter who performs your valuation. There are a lot of valuation companies out there, so I know many entrepreneurs are tempted to just shop around until they find the lowest price, but this is a mistake. A valuation is more than just a commodity. All valuations are not created equally; there are better valuations, better processes, and better valuations business partners for your company. MORE
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. See the 2010 data reported here: Current Pre-money Valuations of Pre-revenue Companies. 2011 Angel Group Valuation Survey. Pre-money Valuation of Pre-revenue Companies. MORE
It seems to me there are two obvious explanations for the dramatic reduction in the time it takes for companies to achive $1bn valuations: The pace of change is increasing allowing new companies to develop and mature faster. MORE
This is the first of a six part series on different methods used by angel investors to arrive at pre-money startup valuations. Detailed descriptions will be published over the next few weeks: The Scorecard Method: This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target. The Cayenne Valuation Calculator. MORE
As David Hornik points out in the comments to Aileen's post, using private company valuations to do this excercise means you will count companies with inflated valuations that they won't be able to live up to. But I think it is OK to use private company valuations as long as you come back and revisit the list from time to time, add new names, and subtract the ones that did not live up to the hype. MORE
One question I know investors sometimes ask founders is “what are your valuation expectations for this round?” ” I try not to throw out hypothetical valuations unless I am actually making an offer to a company. The post What Are Your Valuation Expectations? MORE
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. Especially interesting is the Valuation Worksheet towards the end. A lot of my time is spent helping early-stage companies get to proof points so that they can raise capital. MORE
Website Valuation: How to determine Website Value. Regardless of whether you’re a buyer or seller, trying to work out how to do website valuation is a tricky business. What I will say is that the first and most straightforward way to value any kind of website is to find out how the market as a whole determines a website’s valuation. Website Valuation Methods. This is probably the most commonly used method for website valuation – and it’s relatively straightforward. MORE
In order to attract investors, you have to know the valuation of your company or how much your company is worth. Many new business owners struggle with valuation because it isn’t as easy as crunching some numbers. Take a look at this infographic to learn more about valuation. MORE
Snap Inc--Snapchat's parent company--will sell 200 million shares at $14-$16 each, according to SEC filings published Thursday morning MORE
skip to main | skip to sidebar 19 January 2010 Startup Valuation: How Much Is Your Company Worth? One of the most common issues that concern entrepreneurs is how to address the "Valuation Question." How do we best approach the question of valuation? MORE
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. But, as Mark Suster points out, the valuation of startup ventures also varies with demand. Suster suggests we will see the valuation bubble burst within the next 24 months. MORE
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. It is one of the useful methods for establishing the pre-money valuation of pre-revenue startup ventures. The concept is simply…since: Return on Investment (ROI) = Terminal (or Harvest) Value ÷ Post-money Valuation. (in Then: Post-money Valuation = Terminal Value ÷ Anticipated ROI. MORE
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)? valuation entrepreneur startup investor business MORE
Startup valuation is a misunderstood and complex topic. But that’s not the right approach to understand how valuation works for your startup. It’s the #1 argument for a high valuation. MORE
When companies attract high valuations their investors are predicting the future too – either that the business will trade in M&A at a ‘strategic multiple’ or that they will generate big cash flows. For larger valuations it is the latter. MORE
Startup Valuation is Tricky Business. A valuation is simply an estimated value of a company and is often based on assumptions surrounding the company’s current and future potential. How Startup Valuation Works. MORE
They want to own 20% of the business but care less about the valuation. Another firm shows up, a firm that is less valuation oriented, and they offer $5mm for 20% of the business, which works out to $20mm pre/$25mm post. And it is why USV is committed to small fund sizes, small rounds, and smaller valuations. He did that by keeping his rounds small in the early days and only scaling them when he had to and the valuations offered were much higher. MORE
In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target. Pre-money valuation varies with the economy and with the competitive environment for startup ventures within a region. MORE
Ahh startup valuations. Why are valuations even important? Besides determining things such as the amount of equity you give up for funding and how much value you are able to extract from your company in the long-term, valuations are important for demonstrating how attractive your business is to investors and in showing how you compare with your industry peers. Below are some of the key takeaways: There are 3 main types of valuation: 1. MORE
Setting a valuation for an early-stage startup looking to raise money is tough. To help, I asked eight founders from YEC the following: What is one thing I should be thinking about as I come up with a valuation… This story continues at The Next Web. MORE
A successful small business sale begins with a solid grasp of business valuation. Left unchecked, the valuation process can quickly devolve into a pricing routine that is rooted in personal attachments and other subjective inputs rather than solid data based on marketplace realities. MORE
Bloomberg and other sites are lauding Zuckerberg and co for beating current record holder Google’s eight years from IPO to $250bn valuation. Those with long memories will know that Facebook went public with a much larger valuation than Google ($104bn vs $23bn) so the more apt comparison is Facebook’s eleven years from founding to $250bn with Google’s fourteen years. Facebook’s share price was up 2.4% MORE
Valuation is one of those ubiquitous words: at least when it comes to discussions around startups — and, of course, stock market multiples. In fact, there are several types of valuations and they come into play at different times in a company’s lifecycle. For example, there are the private company valuation figures that get bandied about: think the numbers people reference for Uber and AirBnB for example. And then there are 409A valuations. MORE
With the daily demands of running a business along with the financial pressures and challenges inherent in early-stage companies, a business valuation may not be the first thing an entrepreneur thinks of when he awakes each morning. When does a startup company need a business valuation? MORE
Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. I just want to figure out what a fair valuation is.&# I figured all the VC’s talked so we should. MORE
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. Others business valuation company valuation selling a business MORE
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)? Image via eHow.com. MORE
For business owners, startup valuation is a topic that causes lots of angst, raises tons of questions and definitely gets emotions blazing. Finance Grow business valuation company valuation fundraising investors invse money raising capital raising startup capital raising venture capital MORE
Valuation is always important to founders. valuation. At that point, valuations explode. The post When Valuation Doesn’t Matter appeared first on StartupCFO : Mark MacLeod. Most of the time, the price an investor is willing to pay to invest in your company is a hotly debated topic. But for investors there are some rare times when it (almost) doesn’t matter. When Kleiner Perkins invested in Twitter in 2010, they were criticized for completely missing web 2.0 MORE
As a result, questions around valuation are less about “what is the value of this company” and more “how much capital is a VC willing to part with to buy 20%?” As an entrepreneur, one could always make the argument that it’s best to keep operating longer and show more progress before raising to get the best valuation possible. Waiting 6 months longer to raise may improve valuation in the short term. MORE
Or, in the case of a convertible note, they’ll explicitly state a valuation cap. On the positive side for a founder, directly stating a high valuation expectation up front can anchor the negotiations to a higher level, assuming that an investor takes the leap of faith to invest. MORE
Early-stage technology company valuations are generally a crap-shoot. This post builds on top of his work, and attempts to shed additional light on the valuation process. How To Fundraise Starting Your Company valuation valuations MORE
He used this chart as evidence: Second, I read Josh Kopelman’s/First Round Capital’s Open Letter to Investors from May this year which says that seed valuations are up 3x from 2007-2015 without a corresponding increase in exits. I’m back to the bubble question this morning. MORE
When I first started out as a VC nearly 9 years ago, most early stage company valuations were expressed as pre-money valuations. That is, the valuation of the company prior to the investment of new capital. The post Quick Post on Post-Money Valuations appeared first on ROBGO.ORG. MORE
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. See the 2010 data reported here: Current Pre-money Valuations of Pre-revenue Companies. 2011 Angel Group Valuation Survey. Valuation. MORE
It’s titled A Rational Internet Venture Valuations Bubble and is insightful, clever, and though provoking. VC Post of the Day bubble internet usv valuations wengerAs I sit here in Boulder watching MI-5, taking care of Amy , avoiding SXSW, and catching up on RSS and email, I came across a post from Albert Wenger (USV) that rang true. Easily the best VC post of the week. MORE
Valuation Related Topics A VC : Venture Capital and Technology
APRIL 21, 2014
I just listened to this podcast with Marc Andreessen, Chris Dixon, and Benedict Evans. And since the post I was going to write today is now delayed until tomorrow, I will simply run the podcast as my post of the day. Lot’s of great stuff in here. I particularly liked the bit (about 17.5
Gust
JANUARY 25, 2016
Early-stage technology company valuations are generally a crap-shoot. This post builds on top of his work, and attempts to shed additional light on the valuation process. How To Fundraise Starting Your Company valuation valuations
YoungUpstarts
DECEMBER 12, 2016
In order to attract investors, you have to know the valuation of your company or how much your company is worth. Many new business owners struggle with valuation because it isn’t as easy as crunching some numbers. Take a look at this infographic to learn more about valuation.
Gust
OCTOBER 20, 2011
In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target. Pre-money valuation varies with the economy and with the competitive environment for startup ventures within a region.
A VC : Venture Capital and Technology
JUNE 27, 2013
They want to own 20% of the business but care less about the valuation. Another firm shows up, a firm that is less valuation oriented, and they offer $5mm for 20% of the business, which works out to $20mm pre/$25mm post. And it is why USV is committed to small fund sizes, small rounds, and smaller valuations. He did that by keeping his rounds small in the early days and only scaling them when he had to and the valuations offered were much higher.
The Equity Kicker
APRIL 10, 2015
A few of them have done good up rounds and the easiest way to describe the magnitude is to talk about the valuation multiple. As a refresher, the post-money valuation is calculated as the pre-money valuation plus the amount of money invested.).
Seed Stage Capital
JANUARY 19, 2010
skip to main | skip to sidebar 19 January 2010 Startup Valuation: How Much Is Your Company Worth? One of the most common issues that concern entrepreneurs is how to address the "Valuation Question." How do we best approach the question of valuation?
The Equity Kicker
JULY 1, 2015
He used this chart as evidence: Second, I read Josh Kopelman’s/First Round Capital’s Open Letter to Investors from May this year which says that seed valuations are up 3x from 2007-2015 without a corresponding increase in exits. I’m back to the bubble question this morning.
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. Others business valuation company valuation selling a business
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?” How much is NewCo worth to investors at this point (pre-money valuation)? valuation entrepreneur startup investor business
Rob Go
AUGUST 29, 2016
When I first started out as a VC nearly 9 years ago, most early stage company valuations were expressed as pre-money valuations. That is, the valuation of the company prior to the investment of new capital. The post Quick Post on Post-Money Valuations appeared first on ROBGO.ORG.
Gust
NOVEMBER 1, 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. It is one of the useful methods for establishing the pre-money valuation of pre-revenue startup ventures. The concept is simply…since: Return on Investment (ROI) = Terminal (or Harvest) Value ÷ Post-money Valuation. (in Then: Post-money Valuation = Terminal Value ÷ Anticipated ROI.
Rob Go
APRIL 6, 2017
One question I know investors sometimes ask founders is “what are your valuation expectations for this round?” ” I try not to throw out hypothetical valuations unless I am actually making an offer to a company. The post What Are Your Valuation Expectations?
Gust
OCTOBER 16, 2012
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. We asked each group for their median (middle) pre-money valuation of pre-revenue deals. 2012 Valuation Survey. pre-money valuation in US$ millions).
YFS Magazine
DECEMBER 14, 2015
For business owners, startup valuation is a topic that causes lots of angst, raises tons of questions and definitely gets emotions blazing. Finance Grow business valuation company valuation fundraising investors invse money raising capital raising startup capital raising venture capital
Angel Investing News
JANUARY 19, 2012
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. But, as Mark Suster points out, the valuation of startup ventures also varies with demand. Suster suggests we will see the valuation bubble burst within the next 24 months.
YoungUpstarts
MARCH 11, 2015
With the daily demands of running a business along with the financial pressures and challenges inherent in early-stage companies, a business valuation may not be the first thing an entrepreneur thinks of when he awakes each morning. When does a startup company need a business valuation?
Version One Ventures
JULY 20, 2015
I often get asked about how to determine the valuation for a marketplace startup that is starting to scale. Our assumptions for this valuation: Scale: > $1b GMV. The post How we determine valuations for marketplaces appeared first on Version One.
Early Growth Financial Services
JULY 2, 2015
Valuation is one of those ubiquitous words: at least when it comes to discussions around startups — and, of course, stock market multiples. In fact, there are several types of valuations and they come into play at different times in a company’s lifecycle. For example, there are the private company valuation figures that get bandied about: think the numbers people reference for Uber and AirBnB for example. And then there are 409A valuations.
David Lee
MARCH 27, 2015
When I speak to most founders and investors about financings, we focus on valuation. And when we think of valuation, the other side of the coin is dilution. For any fixed invested amount, the higher the valuation, the lower the dilution. Investors and founders can get fixated on this tradeoff of valuation vs. dilution. valuation/dilution), it’s better to ask questions like, “for X% of the company, what is the investor going to do to justify that ownership?”
Ask The VC
MARCH 9, 2012
It’s titled A Rational Internet Venture Valuations Bubble and is insightful, clever, and though provoking. VC Post of the Day bubble internet usv valuations wengerAs I sit here in Boulder watching MI-5, taking care of Amy , avoiding SXSW, and catching up on RSS and email, I came across a post from Albert Wenger (USV) that rang true. Easily the best VC post of the week.
Inc Startups
FEBRUARY 16, 2017
Snap Inc--Snapchat's parent company--will sell 200 million shares at $14-$16 each, according to SEC filings published Thursday morning
The Equity Kicker
JUNE 20, 2014
When companies attract high valuations their investors are predicting the future too – either that the business will trade in M&A at a ‘strategic multiple’ or that they will generate big cash flows. For larger valuations it is the latter.
The Equity Kicker
APRIL 8, 2015
It seems to me there are two obvious explanations for the dramatic reduction in the time it takes for companies to achive $1bn valuations: The pace of change is increasing allowing new companies to develop and mature faster.
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. Detailed descriptions will be published over the next few weeks: The Scorecard Method: This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target. The Cayenne Valuation Calculator.
Early Growth Financial Services
SEPTEMBER 24, 2015
Ahh startup valuations. Why are valuations even important? Besides determining things such as the amount of equity you give up for funding and how much value you are able to extract from your company in the long-term, valuations are important for demonstrating how attractive your business is to investors and in showing how you compare with your industry peers. Below are some of the key takeaways: There are 3 main types of valuation: 1.
StartupCFO
NOVEMBER 13, 2013
Valuation is always important to founders. valuation. At that point, valuations explode. The post When Valuation Doesn’t Matter appeared first on StartupCFO : Mark MacLeod. Most of the time, the price an investor is willing to pay to invest in your company is a hotly debated topic. But for investors there are some rare times when it (almost) doesn’t matter. When Kleiner Perkins invested in Twitter in 2010, they were criticized for completely missing web 2.0
Rob Go
MAY 20, 2014
As a result, questions around valuation are less about “what is the value of this company” and more “how much capital is a VC willing to part with to buy 20%?” As an entrepreneur, one could always make the argument that it’s best to keep operating longer and show more progress before raising to get the best valuation possible. Waiting 6 months longer to raise may improve valuation in the short term.
Business Plan Blog
JULY 23, 2013
Startup Valuation is Tricky Business. A valuation is simply an estimated value of a company and is often based on assumptions surrounding the company’s current and future potential. How Startup Valuation Works.
Angel Investing News
OCTOBER 8, 2011
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. See the 2010 data reported here: Current Pre-money Valuations of Pre-revenue Companies. 2011 Angel Group Valuation Survey. Valuation.
Inc Startups
NOVEMBER 14, 2012
A successful small business sale begins with a solid grasp of business valuation. Left unchecked, the valuation process can quickly devolve into a pricing routine that is rooted in personal attachments and other subjective inputs rather than solid data based on marketplace realities.
FairSoftware's Blog
OCTOBER 27, 2011
Startup valuation is a misunderstood and complex topic. But that’s not the right approach to understand how valuation works for your startup. It’s the #1 argument for a high valuation.
The Equity Kicker
JULY 15, 2015
Bloomberg and other sites are lauding Zuckerberg and co for beating current record holder Google’s eight years from IPO to $250bn valuation. Those with long memories will know that Facebook went public with a much larger valuation than Google ($104bn vs $23bn) so the more apt comparison is Facebook’s eleven years from founding to $250bn with Google’s fourteen years. Facebook’s share price was up 2.4%
Both Sides of the Table
JULY 22, 2010
Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. I just want to figure out what a fair valuation is.&# I figured all the VC’s talked so we should.
Early Growth Financial Services
AUGUST 23, 2013
Valuation. What you may not know is that it really does matter who performs your valuation. There are a lot of valuation companies out there, so I know many entrepreneurs are tempted to just shop around until they find the lowest price, but this is a mistake. A valuation is more than just a commodity. All valuations are not created equally; there are better valuations, better processes, and better valuations business partners for your company.
Gust
OCTOBER 12, 2011
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. See the 2010 data reported here: Current Pre-money Valuations of Pre-revenue Companies. 2011 Angel Group Valuation Survey. Pre-money Valuation of Pre-revenue Companies.
Blogtrepreneur | Entrepreneur Blog
SEPTEMBER 15, 2015
Website Valuation: How to determine Website Value. Regardless of whether you’re a buyer or seller, trying to work out how to do website valuation is a tricky business. What I will say is that the first and most straightforward way to value any kind of website is to find out how the market as a whole determines a website’s valuation. Website Valuation Methods. This is probably the most commonly used method for website valuation – and it’s relatively straightforward.
The Equity Kicker
DECEMBER 6, 2013
Venturebeat reported yesterday that US startup valuations have reached ten year highs. You can see from the charts above that median valuations have been increasing at all stages from seed through to Series D or later.
SoCal CTO
FEBRUARY 2, 2011
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. Especially interesting is the Valuation Worksheet towards the end. A lot of my time is spent helping early-stage companies get to proof points so that they can raise capital.
The Next Web
MARCH 26, 2015
Setting a valuation for an early-stage startup looking to raise money is tough. To help, I asked eight founders from YEC the following: What is one thing I should be thinking about as I come up with a valuation… This story continues at The Next Web.
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