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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. I just want to figure out what a fair valuation is.&# I figured all the VC’s talked so we should. This starts with understanding how VCs and entrepreneurs often see valuation differently.

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7 Goodwill Factors Will Raise Your Business Valuation

Startup Professionals Musings

When it’s time to sell your company, or get new investors, valuation is the key parameter to success or disappointment. Here is my list of key goodwill elements that investors consider, and how you can optimize them in your favor: Your image, reputation, and depth of experience.

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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

How much you raise determines valuation I know it sounds crazy but at the earliest stages of a company your valuation often is determined by how much money you raise. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it? But people never do. Justin is right. But it’s actually not that silly.

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The Changing Structure of the VC Industry

Both Sides of the Table

We are in a bubble (with so many private $1bn+ valuations). pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. 15 years ago we were at the peak of Internet hype with the launch of many over-capitalized businesses with a market size & opportunity was limited.

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Always Go Home with the Lady Who Brought you to the Dance

Both Sides of the Table

The truth is that I wasn’t as valuation sensitive as my original VC partner was and I would have been willing to raise price. But for me I care too much about my long-term reputation. I don’t want my reputation to be built on abandoning friends in good times or bad. ” We closed the deal. ” I disagreed.

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Valuations 101: The Risk Factor Summation Method

Gust

The Risk Factor Summation Method the fifth methodology for estimating the pre-money valuation of pre-revenue companies we have described in recent posts. Readers may have noted that both the Scorecard Method and the Dave Berkus Method considered a narrow set of important criteria for investment in arriving at a pre-money valuation.

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The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

What the entrepreneurs were really saying is, “I don’t want to take a lower valuation now, while I don’t have customers or a full team. They can occur legitimately in a company whose valuation skyrockets unexpectedly as in, “your last round was at $50 million and you want to raise 9 months later at $750 million.

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