Startup Valuation -- How It Really Works!

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 »»

Video For All Startup Entrepreneurs

We saw a great video today that every startup entrepreneur should take a look at. It is an online interview by Jason Calacanis of Brad Feld. Jason is an outspoken entrepreneur who recently created a huge online discussion about entrepreneurs having to pay substantial dollars to present to Angel investors. Brad Feld is an entrepreneur, turned Angel and VC, who is very entrepreneur centric and has a widely read blog (that’s where we found this).

This video is 2 hours long but the first 90 minutes are really worth listening to. It covers these topics:

VC Bootcamp

DFJ Gotham Ventures & Wilson Sonsini Goodrich & Rosati gave a Venture Capital Bootcamp at Columbia University on June 3, 2009. Much of the content is good for Angels as well, and be sure to look through the entire slide presentation; there is some good material in the latter half. (You can also apply to a local FREE bootcamp entitled Angle for Angels: A Primer for Entrepreneurs on Raising Capital put on by the Foothills Angels.)

You can see the video and slides at the Gotham site, but here are the slides that were posted on Slideshare.

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Startup Angel and VC Investment Market as of June 2009

Dave McClure has been geeking out in Silicon Valley for almost twenty years as a software developer, entrepreneur, startup advisor, angel investor, blogger, & internet marketing nerd. Here is an interesting presentation from SlideShare on the current investment climate for (web) startups.

Pitching Startups to VCs and Angels — David Rose Serial Entrepreneur and Angel

There are many sites, documents and videos on the web about pitching a startup to investors. Here is one video that stands out. It is by David Rose, an angel investor, and serial entrepreneur. He is also the founder of Angelsoft (the platform used by most angel groups to manage entrepreneur applications, and deal flow).

Hope you enjoy it!