Cost Finance Pre-Money Valuation 
SoCal CTO
SEPTEMBER 27, 2011
Suppose further that he's going to cost $60k a year in salary and overhead, x 1.5 = $90k total. If the company's valuation is $2 million, $90k is 4.5%. Of course, to be able to use this kind of formula, you will need to be able to determine how much impact the person will have and figure out a valuation. and we have 11.1%
Both Sides of the Table
JUNE 22, 2011
In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment).
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Both Sides of the Table
SEPTEMBER 5, 2012
Was Paul Graham right in his “high resolution” financing post? Some thoughts on raising angel money. As in, “your money into my company will convert at a 15-20% discount to the next round of capital I raise with a maximum price of $8 million pre-money valuation (or whatever the cap was).”
Both Sides of the Table
SEPTEMBER 29, 2009
While the company continues to perform well it has come at a cost. But they were the lucky company because there was an investor that believed in the high-growth scenario and was willing to continue funding at any cost. The company was therefore priced at $15 million post-money and the VC (s) own 1/3 rd.
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. Sub-$2 million pre-money, it is better to bootstrap. If you have to raise money, try to do so as convertible notes.
Lightspeed Venture Partners
OCTOBER 7, 2012
As he said, “Great innovations solve problems or reduce costs. As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today. So the entrepreneur was willing to accept a valuation more than $10M lower than a previous valuation.
Up and Running
SEPTEMBER 19, 2017
That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record. That is to say, they’d want to be able to control costs and revenues at a high level.
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