Investor Connect Podcast

In raising funding, valuation is a key number the CEO and investor must come to agree with.
As a startup you must determine your target valuation. There are several methods. One method is the VC Quick Valuation Method
This method starts with the exit of the startup.

You assume the exit value your startup is being acquired for.

You then work backwards to calculate what your startup must be worth now based on that target exit value.

Here’s the VC method by steps:
1. Estimate your exit value.
Use simple exit value estimation using industry trends or estimate using Price/ Earnings multiples.
2. Calculate the post-money valuation
3. Calculate the pre-money valuation.
4. Finally, calculate the equity percentage owned by the investors.

Remember, option pools can have a big impact on 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!

Direct download: Startup_Funding_Espresso_-_VC_Quick_Valuation_method.mp3
Category: -- posted at: 9:07pm CDT