Startup Professionals Musings

NOVEMBER 26, 2012

All principals and employees add value. In finance, the income approach describes a method of valuing a company using the concepts of the time value of money. NewCo is projecting revenues of $25M in five years, even with a 40% discount rate, the NPV or current valuation comes out to about $3M.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Startup Professionals Musings

SEPTEMBER 30, 2011

All principals and employees add value. In finance, the income approach describes a method of valuing a company using the concepts of the time value of money. NewCo is projecting revenues of $25M in five years, even with a 40% discount rate, the NPV or current valuation comes out to about $3M.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Both Sides of the Table

SEPTEMBER 8, 2009

I took a job in corporate finance as an intern my junior year at First Interstate Bank and I did system design on the side, as my main job was corporate planning. Ask if you could shadow different functions like marketing, finance or product management. I helped program my college’s recruiting office’s software system.

NPV 337

NPV Chicago Balance Sheet Database 337

Startup Professionals Musings

SEPTEMBER 6, 2010

All principals and employees add value. In finance, the income approach describes a method of valuing a company using the concepts of the time value of money. NewCo is projecting revenues of $25M in five years, even with a 40% discount rate, the NPV or current valuation comes out to about $3M.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Gust

NOVEMBER 18, 2012

All principals and employees add value. In finance, the income approach describes a method of valuing a company using the concepts of the time value of money. NewCo is projecting revenues of $25M in five years, even with a 40% discount rate, the NPV or current valuation comes out to about $3M.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Rob Go

MAY 26, 2016

The second is some version of “it helps you, your employees, and your shareholders sleep better at night.” The assumption here is that that increased value is NPV positive based on other potential uses of the capital that you could have gotten up front. That is not good. Cars are a good example of this.

Revenue 53

Revenue NPV Valuation Forecast 53