By VStart, on March 8th, 2010
Want to know how Venture Capitalists think about valuing your startup company? Here is an article by Scott Lenet of DFJ Frontier, who have a Sacramento office. Looks like formulas aren’t used; rather valuation is based on three things:
- Valuation of deals done on comparable companies
- Investors’ experience, and having the opportunity to see many deals, done or not
- Whether the investment return at the time the company exits (e.g., sells to another company, or does an IPO), under the best circumstances, meets the VC firm’s criteria
The article could lead one to think that a 10 times (10x) return is Read More »»
By VStart, on July 13th, 2009
It’s easy for a startup entrepreneur to be trapped with the question “So what’s your valuation”. If you throw out too high a number that can be the end of the discussion; too low and you’ve left something on the table. The video below offers one answer: basically it suggests you say you’ll let the market decide.
That’s a reasonable answer since investors often have much more experience than the entrepreneur in knowing current valuation ranges. Yet, frequently investors will insist on an answer to better determine whether they should pursue further investigation of your company. So just in case the “let the market decide” answer doesn’t cut it, Read More »»
By RobbM, on July 3rd, 2009
by: Robb Moore, CEO of ioSafe
As the newbie entrepreneur on the SARTA VentureStart team, I thought it would be appropriate to help some of my fellow entrepreneurs learn from some of my mistakes while pitching my company to investors. Below are five dumb things I’ve done. I hope these nuggets will save you a little time in your path to financial freedom!
1. Pitching Approach: Pitching the Product vs. the Business I’m an engineer to the core. I love technology. I love MY technology. I love MY ideas. I think MY ideas are fantastic! I think MY ideas are worth Read More »»
