Funding - Valuation - VC
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On valuation
There’s this dance that entrepreneurs and venture capitalists do when it comes time to negotiate the economic terms of an investment. And it all revolves around valuation. The question is what is the fair value of the business?
Venture capitalists valuing startup companies have a particularly difficult challenge these days, as public company comparable values have plummeted. This makes it even harder for the startup entrepreneur seeking venture capital know what their startup is worth .
Startup valuation - VC valuation valley of death
Want to Know How VC’s Calculate Valuation Differently from Founders? | Both Sides of the Table (Build 20100722155716)
Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. It was accept the terms or go into bankruptcy so we took the money.
Thirteenth in a series of weekly posts by myself and Nicholas Lovell of Gamesbrief which answer the fifty questions you should ask before raising venture capital. We expect the series to run for a year after which we will collate the posts into a book. You can find the rationale behind the series here , and the list of questions here .
How does a VC value a business?
Last week as part of our 50 Questions series I wrote about how VCs value businesses by working back from expected exit values, using various industry rules of thumb and responding to market dynamics (hotness of deal and market).
Why VCs don’t value companies by discounting cash flows « The Equity Kicker
Mark Suster has a great post on calculating valuation and the things that VCs can throw at you to make the deal better for them (I guess I should say us) than it actually looks.
A VC: Terms, Term Sheets, and Terminal Value (Build 20100722155716)
Today on MBA Mondays , I am going to walk you through some math that our team does when looking at a venture investment in a company that is starting to scale its business. Let's assume we have a portfolio company.
A VC: Pricing A Follow-On Venture Investment
Vous avez terminé votre business plan et souhaitez partir en "road show" devant une quinzaine d'investisseurs.
