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Valuation Methods 101

Gust

It is one of the most useful methods for establishing the pre-money valuation of pre-revenue startup ventures. Return on Investment (ROI) = Terminal (or Harvest) Value ÷ Post-money Valuation. (in Then: Post-money Valuation = Terminal Value ÷ Anticipated ROI. The Cayenne Valuation Calculator.

Valuation 174
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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

I’ve been preaching the “don’t get ahead of your inherent valuation&# message for nearly 10 years. million post-money valuation with no revenue. We had companies pitching us that had almost no revenue at all and they were raising $10-15 million in capital at a $40-50 million pre-money valuation.

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NextView’s Greatest Hits

View from Seed

In this comprehensive template and guide we break down each of the nine core sections in the deck: intro , team , what do you do , is it working , why does it matter (market) , can you be the best in the world (product, growth, financial metrics) , where are you going , what do you want (the ask) , and appendix. ” (Lee Hower).

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So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

When you raise larger rounds there is more “due diligence,” which includes: calling customers, looking at financial metrics, doing cohort analysis (looking for trends like changes in churn rates), evaluating competitor positioning and understanding more of the competency of your executive team.

Burn Rate 150
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Bad Notes on Venture Capital

Both Sides of the Table

There were no metrics. Him: On metrics. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. How do you think they’ll feel if your next round is at a $50 million post money valuation and their hard-earned $25,000 is worth 0.05% of your company?

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90 Things I've Learned From Founding 4 Technology Companies

betashop.com

That means if you’re taking money with a $5M post-money valuation, the expectation is that you are building for a minimum $50M exit. $10M 10M post-money valuation = $100M target. 500M valuation = $5B target. Jason is also an investor in and Board Member at RJ Metrics. Connect With Me.

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Why are the majority of angel investors focused on opportunities with large TAM?

Gust

The problem is that since the average holding period for an angel investment is around nine years , that means by the time you’ve toted up the returns for 90% of your investments, and subtracted out the time value of money, the one very successful investment in the entire portfolio must return at least *30* times the original investment!