Investor Connect Podcast

Maximizing Your Valuation

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Valuation is a negotiation and not a formula.

While there are formulas and rules of thumb to help determine valuation, it comes down to positioning and negotiating.

Here are some key points to maximize your valuation:

Emphasize the team and show what they are doing to help your business.

The investors see the CEO often and rarely see the team and so may undervalue them.

Highlight the repeatable, predictable nature of your revenue rather than the absolute value of it.

Investors look for predictability in the revenue, so focus on the factors that generate revenue and show how they are repeatable.

Most fundraises kick-off after achieving a milestone such as a product launch, revenue traction achieved, or a patent filed.

Emphasize your most recent milestones showing customer demand and past market success.

Calculate your valuation with various models to find the one that puts your deal in the best light with the highest valuation.

Consider the market in timing your fundraise. The hotter the stock market, the higher the valuation you can demand.

Connect your startup to a technology trend. Investors will pay more for a hot, new technology, so associate your deal with it.

Positioning your deal properly will earn you a higher valuation.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Direct download: Maximizing_your_valuation.mp3
Category:general -- posted at: 6:00am CDT