Both Sides of the Table

JUNE 5, 2011

I wrote this because over the last decade I’ve seen a destructive cycle where otherwise interesting companies have been screwed by raising too much money at too high of prices and gotten caught in a trap when the markets correct and they got ahead of themselves. There is an inherent value that any company has. That’s fine.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Startup Professionals Musings

NOVEMBER 26, 2012

Many entrepreneurs stumble at this point, losing the deal or most of their ownership, by having no answer, saying “make me an offer,” or quoting an exorbitant number. Early customers and contracts in progress add value. I’ve written about this before, but it’s a mysterious subject, and I’m always learning more.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Startup Professionals Musings

SEPTEMBER 30, 2011

Many entrepreneurs stumble at this point, losing the deal or most of their ownership, by having no answer, saying “make me an offer,” or quoting an exorbitant number. Early customers and contracts in progress add value. I’ve written about this before, but it’s a mysterious subject, and I’m always learning more.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Startup Professionals Musings

SEPTEMBER 6, 2010

Many entrepreneurs stumble at this point, losing the deal or most of their ownership, by having no answer, playing coy, or quoting an exorbitant number. Early customers and contracts in progress add value. Assign probabilities to active customer sales efforts, just as sales managers do in quantifying a salesman’s forecast.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Gust

NOVEMBER 18, 2012

Many entrepreneurs stumble at this point, losing the deal or most of their ownership, by having no answer, saying “make me an offer,” or quoting an exorbitant number. Early customers and contracts in progress add value. Image via eHow.com. I’ve written about this before, but it’s a mysterious subject, and I’m always learning more.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Both Sides of the Table

SEPTEMBER 8, 2009

My wife just pointed out to me that learning about the time value of money or how to value a company is something that every non-business undergrad should learn how to do. But there are plenty of partners and successful entrepreneurs who don’t have MBAs. Sales is the lifeblood of every organization.

NPV 337

NPV Chicago Balance Sheet Database 337

Seeing Both Sides

JANUARY 11, 2011

When to sell a company is one of the hardest decisions a board and entrepreneur face, and it's a decision made even more difficult if there is a lack of alignment around the table. There is no easy answer to help determine which path to pursue, but here are five considerations that can help an entrepreneur frame the decision: Passion.

Post-Money Valuation 40

Post-Money Valuation Dilution Cofounder Valuation 40