Business Valuation: Determining The Worth Of A Company


Business valuation is defined as a way to determine the overall economic value of a company , and is a necessary component of a sound business plan and strategy. Any of these situations will demand a valuation to determine current and future projected value. .

10 Goodwill Elements To Raise Your Business Valuation

Startup Professionals Musings

In his classic 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.

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Benefits Of Business Valuation


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

What Startups Need To Know About Business Valuation


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?

How to Talk About Valuation When a VC Asks

Both Sides of the Table

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.

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)? valuation entrepreneur startup investor business

Startup Valuation Tips


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.

Valuation: Is Your Small Business as Priceless as You Think?

Up and Running

This will require an accurate valuation. Buyers and sellers don’t always agree on what’s valuable and what isn’t, which is why hiring a valuation consultant or a CPA who has experience valuing businesses is a good idea. Managing a Business business valuation valuation

When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

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.

On valuations, unicorns and the Israeli charging ponies

VC Cafe

It's not only the media that makes us obsessed about private startup valuations - sometimes the founders and VCs play a role in it too. We take a look at valuations, how to speak with your VC about. Charging Ponies Valuation charging ponies fred wilson Israel mark suster techaviv unicorns valuations yaron samidThis is a content summary only. Click on the post title to continue reading this post, share your comments, browse the website and more!

4 Things To Know About Property Valuation In Real Estate

The Startup Magazine

If you have an interest or property in real estate, then here are the 4 things that you need to know about property valuation: Photo by Kevin Wolf on Unsplash. There are different methods of appraisal that are used when determining the property valuation.

Comparing valuations between rounds

The Equity Kicker

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.).

Ten Components of Startup Valuation For Investors

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)?

Valuation trickle down

The Equity Kicker

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.

The Challenge Of Figuring Out Your Pre-Money Valuation


Sometimes the list of challenges may feel never ending – from writing the business plan to finding the right partner – but one of the single most important challenges entrepreneurs face is calculating a realistic, defensible pre-money valuation. . What valuation methods did you use?

5 Ways To Radically Improve Your Company Valuation

YFS Magazine

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

Valuations 101: Scorecard Valuation Methodology


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.

Reduce five risks: Increase your valuation


So, it is important for the entrepreneur to identify, address and mitigate each of these in order to increase valuation and decrease the risk of ultimate loss of the business. Why five risks?

Postman raises $150 million at $2 billion valuation

Our Own Start-up

Postman is a SaaS-based (Software as a Service) API (Application programming interface) development firm that has raised $150 million led by Insight Partners at a valuation of $2 billion.

Valuation Part I: Peeling the Onion, or How Top Investors Value the Startups They Invest In


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

Valuation Methods 101


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.

Tesla Lost $700 Million Last Year, So Why Is Tesla’s Valuation $60 Billion?

Steve Blank

What explains this more than 1,000 to 1 discrepancy in valuation? However, the question shouldn’t be why Tesla has such a high valuation. Automobile manufacturers shipped 88 million cars in 2016. Tesla shipped 76,000. Yet Wall Street values Tesla higher than any other U.S.

I Built My Startup To A $15M Valuation – While Living In A Van

YFS Magazine

Over a course of two years, I bootstrapped a startup to a $15M valuation – while living in a van. After that experience my sense of reality was redefined. Editor Picks Lifestyle digital nomad lifestyle location independent personal development starting a business startup advice

After 20 years: Updating the Berkus Method of valuation


So how do you use financial projections as valuation metrics when you know the odds of those being accurate predictors of the future are so very unreliable? For example, $500,000 maximum value to each element yields either a maximum pre-money enterprise valuation of $$2 million or $2.5

10 Rules of Thumb for Startup Investment Valuation


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

Startup Valuations – Again….


I have written about startup valuations previously. This morning I was reading one of my favorite daily compilations of articles (called Innovation Daily, subscribe here ) and came across another great short article on startup valuations called “ Seed Rounds: How to Pick a Valuation “ Joseph Walla, who I don’t know, wrote it. There’s a reason it’s so difficult to figure out – valuations have little basis in reality for early stage companies.

What Valuation Should I Expect in My Seed Round?

This is going to be BIG.

Powered by OpenReel I have to be honest, I'm a little suspect when one of the first questions a founder asks me is about valuation. That being said, you want to feel like you got a good deal--and your lead investor should be able to walk you through how they got to a particular valuation and why they thought it was appropriate.

US startup valuations reach ten year highs

The Equity Kicker

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.

6 reasons why Latin American valuations are lagging behind Silicon Valley

The Next Web

Latin American startups haven’t had the same valuations as Silicon Valley startups. This frustrates many Latin American entrepreneurs seeking investment, as they don’t understand why Latin American VCs aren’t doing deals at Silicon Valley valuations.

Valuations 101: The Venture Capital Method


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.

Valuations 101: The Cayenne Calculator


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. The High Tech Startup Valuation Estimator is an online tool developed by Cayenne Consulting to assist entrepreneurs and investors in estimating the pre-money valuation of startup enterprises. It is very easy for optimistic users to quickly arrive at unreasonable pre-money valuations for startup ventures.

Tiered Valuation Caps

Austin Startup

TL;DR: Using a “tiered” valuation cap structure in a convertible note or SAFE can provide flexibility that bridges the gap between (i) what founders expect their company to be worth in the near future, and (ii) what investors are comfortable accepting now. Did you get a “good” valuation? What a valuation cap isn’t. For that reason, pegging an appropriate valuation can be very difficult for investors. Traditional valuation caps: downside protection for investors.

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. 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.

Om Malik on why valuations defy metrics

The Equity Kicker

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.

Spectacles and $SNAP’s $20B Valuation

Austin Startup

In summary: Snap’s current business doesn’t justify a $20B valuation. How can one justify a $20B valuation for Snap? The product that could most likely justify Snap’s $20B valuation is Spectacles. snapchat news augmented-reality valuation

Startup Valuations Revisited


On October 17th I posted on seed and early stage startup valuations. This morning I read a post by Marty Zwilling on startup valuations. His post on startup valuations lists the following rules of thumb (i.e., Critically, I am only talking about seed and early stage company valuations as opposed to valuations for more mature companies: Place a fair market value on all physical assets (asset approach) – pretty much a waste of your time.

Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

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.

Don’t get hung up on valuation.


I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up premoney valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road.

A Cap is not a Valuation

Bryce Dot VC

Many of the companies with notes we evaluated had valuation caps on them; meaning, if the new investor priced the round higher than the cap the seed investors would reap the benefits of a lower valuation given the earlier risk they’d taken. The problem we began to run into was that founders believed that these caps were actual valuations. Caps are not valuations, they are aspirational and are designed to be grown into.

Valuations 101: The Risk Factor Summation Method


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. For more information on determining the average valuations in your area, see the Scorecard Method. million pre-money valuation.

Startup Valuations Revisited Again


I have posted on startup valuations a couple of times. On June 27th Fred Wilson wrote a post called Valuation vs. Ownership. Here is the good news: if you read my prior posts and Fred’s post, I think you are about 99% of the way there in solving any mystery behind startup valuations for early stage financing rounds (i.e., Yes, it is more art than science (I still have never used any sort of DCF for a valuation at this stage), but the art is really not that mysterious.

Age of companies when they achieve $1bn valuations

The Equity Kicker

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.

Hugh opportunities do NOT command amazing pre-money valuations.


Dave’s note: Popular Bill Payne returns this week with a thoughtful take on valuations. Yet, at the pre-revenue stage of development, angel investors price both companies at a pre-money valuation of $1.5