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

In negotiating the valuation, the investor can use current market comps or comparables to set the initial price.

By looking at companies in the same sector and stage, one can find the range of valuations.

From there, the investor can raise the valuation based on the values the startup has built already and lower it for the risks remaining.

Investors typically look for 20-25% of the equity for each raise.  

The investor can adjust the valuation depending on how much the company is seeking.

Other factors that can change the valuation include recent changes in: 

Market growth -- has the market growth changed?

Competition -- has the competitive landscape changed?

Also, by applying the current valuation to the fundraise, the investor can see if it is still in line with the longer-term roadmap of fundraising.

It’s important to ensure the startup doesn’t set the valuation too high on this round as it may prove difficult to raise a follow-on round at the next valuation.

Market comps give the investor a starting point but other factors must be considered.


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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Music courtesy of Bensound.

In this episode, Hall welcomes Juan Alonso-Villalobos, Fintech Program Director at Startup Wiseguys.

Headquartered in Tallinn, Harjumaa, Startup Wiseguys is a mentorship-driven accelerator program for early-stage B2B SaaS, Fintech, Cyber, and Sustainability startups, providing seed capital (€30K), office space, and most importantly – world-class mentors.

The intensive 5-month accelerator program is focused on validating, developing and selling products to business customers. Over 250 international and local mentors with B2B startup experience help startups move through those stages much faster than they would on their own. Founders are also prepared to sell their vision to investors, and the program culminates in a Demo Day, where startups get to present to venture capitalists and angel investors.

Focused during the last years in the investment and startups world, Juan is himself an entrepreneur at heart, having launched several projects (and closed some of them too).

Juan has been Fintech Director in Startup Wise Guys for the last 4 years, and although also supporting startups from other sectors, he sees all the startups within Fintech, Insurtech, or other “money-related” regulated businesses. As he says, he was already part of one of the first “fintechs” in Spain and France, within ING Direct, which was there to challenge the status of banking at the time. He is a Partner of his own consultancy firm, PMLG Advisory through which he gives support to International PE firms seeking to develop their Spanish businesses.

Juan has developed his professional career mostly in financial services (banking and insurance) in C-level positions covering very different organizational areas: Finance, Marketing, Business Development, Strategy, Digital. These multi-expertise skills allow him to have a 360º view on businesses. A vast experience in consultancy, banking, insurance, and capital markets.

He holds BA degrees in Law and Business, both from Comillas University in Spain, and gone through Executive Education in CEDEP (Fontenaibleau – France). He lives (most of the time) in Madrid with his wife, also a tech entrepreneur, and his four children.

Juan advises entrepreneurs and investors, discusses how he sees the industry evolving, and shares some of the challenges he has faced.

You can visit Startup Wiseguys at www.startupwiseguys.com, via LinkedIn at www.linkedin.com/company/startup-wise-guys, and via Twitter at www.twitter.com/StartupWiseGuys.   

Juan can be contacted at juan@startupwiseguys.com, and via LinkedIn at www.linkedin.com/in/juanalonsovillalobos/.   

Music courtesy of Bensound.