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)? This is the most concrete valuation element, usually called the asset approach.

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Valuation Pre-Money Valuation NPV Intellectual Property 270

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

SEPTEMBER 6, 2010

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)? This is the most concrete valuation element, usually called the asset approach.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

VC Cafe

OCTOBER 16, 2024

Sierra AI , founded by Bret Taylor (former co-CEO of Salesforce, CTO of Facebook and current chairman of OpenAI) is currently raising hundreds of millions of dollars at $4 billion valuation, just a year or so from launch after unlocking AI voice agents for companies. Virtual employees for hire.

Vertical 170

Vertical Generative AI B2C CTO Hire 170

ConversionXL

OCTOBER 2, 2018

Don’t expect a single paper to define, for all time and every business, the ideal pixel width for product images or sample size for accurate sales forecasts. Multiple ‘buy buttons’ in the brain: Forecasting chocolate sales at point-of-sale based on functional brain activation using fMRI”. Read the full study here (gated content).

Forecast 134

Forecast Guatemala Audio Green 134

Up and Running

OCTOBER 16, 2019

You don’t need to write a 200-page document, but you will need something to hand to your banker or investor that shows that there’s a market for the problem your business solves and includes your key financial statements and forecasts. . Having a solid business plan is going to help you make the case for a higher valuation.

Business Plan 108

Business Plan Small Business Forecast Balance Sheet 108

Up and Running

OCTOBER 16, 2019

You don’t need to write a 200-page document, but you will need something to hand to your banker or investor that shows that there’s a market for the problem your business solves and includes your key financial statements and forecasts. . Having a solid business plan is going to help you make the case for a higher valuation.

Business Plan 108

Business Plan Small Business Forecast Balance Sheet 108

crowdSPRING Blog

JANUARY 5, 2011

Forrester Forecasts One Third Of U.S. Goldman Invests in Facebook at $50 Billion Valuation – [link]. Mobile carriers are calling everything 4G these days – [link]. Online Consumers Will Own A Tablet By 2015 [link]. Best of 2010 Tech, Year In Review (by @FrankGruber ) – [link].

Social Media 93

Social Media Small Business Design Media 93

Gust

NOVEMBER 18, 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)? This is the most concrete valuation element, usually called the asset approach.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Steve Blank

MARCH 17, 2020

Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. If so, whatever revenue forecast and sales cycle estimates you had are no longer valid. They triage their deals – first worrying about liquidity of their late stage deals which have the highest valuations.

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Burn Rate Startup Valuation Sales Cycle 436

The Startup Magazine

JANUARY 20, 2025

Valuation can be influenced by many factors, including industry trends, financial performance, and market conditions. Additionally, understanding your businesss value within the context of market trends and industry forecasts is essential for getting the best price.

Intellectual Property 142

Intellectual Property Forecast Valuation Framework 142

Startup Professionals Musings

SEPTEMBER 30, 2011

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)? This is the most concrete valuation element, usually called the asset approach.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

www.entrepreneur.com

SEPTEMBER 22, 2011

Franchises Franchises Home Franchise 500 Home-Based Low Cost Top New Fast Growing Top Global Biz Opportunities Franchises for Sale Franchises A Bright Forecast for a Solar Panel Installation Franchise. Sweat equity is just one component of early-stage valuation. Franchises Beware of Song Birds When Doing Homework on a Franchise.

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

YoungUpstarts

FEBRUARY 14, 2017

Managing your cash position when forecasted sales aren’t being achieved is tough, and if you are spending more than you are generating and cash piles are dwindling, now is the time to address your financial position. It now has a multi-billion dollar valuation. Cash is king, always has been and always will be.

Technical Review 157

Technical Review Architecture Revenue Channel 157

Up and Running

JULY 14, 2015

Any investor will put their valuation on your business based on a number of factors, including looking at important metrics for your business, patents, or assets. But raising too much money will cause the valuation to increase. Let’s say the valuation an investor puts on your business is $2 million.

Technical Review 60

Technical Review Valuation Due Diligence Finder 60

Startup Professionals Musings

MARCH 13, 2020

In that context, I offer the following financial projection strategies, from my own experience: Forecast a business that has plenty of room to grow quickly. They prefer a liquidity event such as an IPO or an acquisition by an existing large industry player, with a valuation at that time of five multiples or more of your projected revenues.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

ReadWriteStart

JANUARY 28, 2022

This article will assist you in gaining a fundamental understanding of equity valuation, kinds of equity, and other related topics. Of course, the higher the company’s valuation, the lower the scale of equity and advisor should expect. Importance of equity valuation. Make forecasts about the company’s performance.

Valuation 108

Valuation Equity Warrant Common Stock 108

VC Cafe

DECEMBER 6, 2024

Google DeepMind released GenCast , a very accurate weather forecasting model. Eliat Shemesh, Interdisciplinary Research Leader NEW VENTURE ROUNDS Now it’s confirmed, it’s time to congratulate Amiram Shachar and team Upwind Security on their $100M series B at a $900M valuation for their cloud security platform !

Israel 78

Israel Technical Review Early Stage Venture Capital 78

SoCal CTO

MAY 19, 2010

By way of background for the question, there’s a great post by Bob Aholt, a Pasadena Angel: An Angel Investor’s Thoughts on Valuation. In his recent post, Top 10 Ways to Win a Business Plan Competition , he says: #4 I wanted to push this further down the list, but I just bristle at this: the revenue forecast. So get real.

Hockey Stick 205

Hockey Stick NPV IRR Valuation 205

Hearpreneur

SEPTEMBER 21, 2018

1- The Forecast Podcast. The Forecast Podcast from Ahmad Munawar at Boutique Growth has great format and guests (I don’t just say that because I was a guest– I was already a fan). Photo Credit: Reuben Swartz. Guy interviews well-known entrepreneurs about the companies they built.

Entrepreneur 100

Entrepreneur Hosting Cofounder Forecast 100

Tim Keane

MARCH 9, 2011

How to prepare a sales forecast for a business plan » March 09, 2011. 2] One of the huge mistakes entrepreneurs make at this stage is accepting friends and family money and assigning huge valuations to the company to reduce the size of future payments required.  Startups and angels: Along the way to success.

Finance 83

Finance Bootstrapping Startup Equity 83

The Next Web

FEBRUARY 27, 2014

One of the questions I get, more often than not, is what is the appropriate valuation of my business. multiple interested investors competing for the deal, and driving up your valuation in the process). Never have an investor think they are the only investor pursuing your business, as that will hurt your valuation.

Valuation 167

Valuation Forecast Seed Stage .Net 167

David Teten

AUGUST 6, 2015

So often I speak with companies that have charged ahead building an ultra-complex daily or weekly model with thousands of assumptions and complex dashboard outputs, when their potential investors simply want a high-level 24 month forecast with 12 months of reconciling historical data.”. HOW TO MAKE YOUR CELLS READABLE.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

abovethecrowd.com

JULY 10, 2014

Financial models, especially valuation models, are interesting in that they can be particularly precise. While it may seem like a tough question to answer, I would argue that most practitioners of valuation analysis would state “not very high.” It is not my aim to specifically convince anyone that Uber is worth any specific valuation.

San Francisco 111

San Francisco San Jose Marketing Technical Review 111

Up and Running

MAY 15, 2019

Putting together a sales forecast and a cash flow forecast that you monitor at least monthly can be really helpful. Market valuation coverage (for offerings such as a barrel aging program). The same thinking applies across the brewery. “At Equipment breakdown coverage (depending on the age of their brew system).

Oregon 24

Oregon Jordan Software Review Distribution 24

The Startup Magazine

AUGUST 21, 2024

A reliable inflation calculator is an essential tool that allows real estate investors to accurately estimate the effects of inflation on property valuations and rental income. Assess the impact on returns and viability: Gauge how inflation impacts your margins, rents, valuations and overall feasibility. when planning finances.

Valuation 158

Valuation Forecast .Net India 158

David Teten

JANUARY 19, 2021

In all these cases, capital is provided to fuel forecasted growth without creating a commitment to a particular vision for future funding rounds, exit goals, and associated blitzscaling. Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. The State of Flexible VC.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Berkonomics

NOVEMBER 7, 2024

Careful about “hockey stick” forecasts. VC rule of thumb Most VC’s look for a 10x opportunity – that is – ten times increase in the valuation from investment to liquidity event. Here’s a valuation example for you based on amount to be raised Try this example: You want to raise $2,000,000 today. How much money can you get?

Hockey Stick 62

Hockey Stick Liquidity Event Valuation Balance Sheet 62

Startup Professionals Musings

OCTOBER 12, 2010

. ###### Today's guest blog is by Akira Hirai, founder of Cayenne Consulting, a firm that helps entrepreneurs prepare for the fund raising process by developing strategies, business plans, financial forecasts, and presentation materials. Tags: scorecard venture value Akira Hirai business valuation. His website is [link].

Intellectual Property 223

Intellectual Property .Net Valuation Distribution 223

Startup Professionals Musings

MAY 13, 2011

Include a current valuation estimate. Financial forecast and metrics. Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. See where your cashflow bottoms out.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

NOVEMBER 2, 2018

As an investor myself, I look for a balanced story focused on the major elements that drive profitability, including the following: A 5-year financial forecast achieving a positive cash flow early. A huge user base may also be a source of profitability, if it results in a multi-billion dollar valuation.

Intellectual Property 48

Intellectual Property Initial Public Offering Merger Acquisition 48

Startup Professionals Musings

AUGUST 13, 2012

Include a current valuation estimate. Financial forecast and metrics. Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. See where your cashflow bottoms out.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Up and Running

OCTOBER 3, 2018

Set a specific time each month to review it , comparing forecasts to actuals and revising as necessary. Others predict Automated Valuation Models will provide more sophisticated revenue and expense information, possibly replacing financial analysts. You can include expanded versions of your sales forecasts and other financials.

El Paso 61

El Paso Business Plan Technical Review Forecast 61

YoungUpstarts

MAY 17, 2019

The risk: You base your purchase price, valuation, loans, and cash forecast off historical financials, only to find out a few months into owning the business that the numbers were all wrong and you are losing cash. The opportunity: Negotiate a better price on your deal with findings in a due diligence report.

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Due Diligence Forecast Deal Structure Valuation 185

thinkspace.com

SEPTEMBER 7, 2012

already some initial funding does the company already have a valuation? My question is then, I would like to forecast a projected value on my Business, divide it into shares & sell 30 to 40 shares to gain capital investment for my Business. Thanks Harrison for posting a comment… I agree with you. link] Peter Chee.

Equity 62

Equity Employee Founder CTO Hire 62

David Teten

SEPTEMBER 23, 2017

Close to 80% responded that manual processes, such as tracking down support, preparing reports and pulling data from different sources, are the biggest pain points they face in the valuation process. Kushim , Totem , and VisibleVC focus on serving this need among VCs.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

gigaom.com

JULY 10, 2012

Mobile Q4: The scramble for spectrum continues Updated: Forecast: global mobile subscribers, 2010–2015 Carrier IQ and the continued erosion of operator trust. Previous What’s wrong with the tech valuations? Sign up for a free trial. If you like this story, please share it.

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