1 / 10

How startup valuation works

How startup valuation works. How startup valuation works. Early Stage. Growth / scaling Stage. Exit Stage. Early stage. “Valuation” does not show the true value of the company It shows how much the company investor gets for her money

misu
Download Presentation

How startup valuation works

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. How startup valuation works

  2. How startup valuation works Early Stage Growth / scaling Stage Exit Stage

  3. Early stage • “Valuation” does not show the true value of the company • It shows how much the company investor gets for her money • Founders with success in the past tend to get higher valuations (they give up less of the company in early stage than first-timers)

  4. Early stage • Valuation depends on how much money you need • You need ENOUGH money to • Run 3 experiments and • Have at least 6 months of runway • Investors want to see growth within 18 months

  5. Early stage • Valuation depends on who you take money from

  6. Scaling stage • Investors find similar companies to determine their value to revenues ratio – then use it to calculate value of your company • Revenueoc/valuationoc ~ Revenueyou/valuation? • Take revenues this month, year, next year • Calculate best, worst, and base cases • Triangulate 3 cases • Project when startup will exit • Discount earnings by time value of money

More Related