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

In valuing a startup for an investment, it’s useful to find valuations by looking at similar startups.

This technique is referred to as ‘comps’ which stands for comparable.

This method looks for companies in the same sector and analyzes both exits and investments to determine the current valuation for the segment.

This is often a multiple of revenue or EBITDA.

Five to ten companies should give you an indication of the valuation metric currently in use.

Look for investments and exits that are three years old or less.

Valuations shift with the stock market, investor sentiment, and other factors.

For exits, note what the investor paid for.

Exits are driven by acquiring the team, the core technology, a product, or the entire business. 

This will help you determine the going rate for the company you are considering investing in.


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 Cam Houser, Founder of Actionworks.

Located in Austin, Texas, Actionworks mixes humans (from companies, universities, and governments) with algorithms trained on interesting topics (from business books to psychology textbooks to everything Paul Graham ever wrote) to create a process that helps organizations innovate. 

For over a decade, Cam has used video to win customers and build social capital. Actionworks' flagship offering is Minimum Viable Video, a cohort-based online course that teaches camera confidence and smartphone video. Cam also teaches entrepreneurship to students in 30 countries as an entrepreneurship educator and University of Texas professor. Before Actionworks, Cam founded 3 Day Startup, an organization accelerating 20,000 entrepreneurs at 300 institutions, including Harvard, MIT, and Stanford. Alumni have raised hundreds of millions of dollars, participated in Y Combinator, and exited to Google.

Cam shares with Hall what excites him now in the sector. He advises entrepreneurs and investors, and discusses what he sees as immediate opportunities for investors to pursue.

You can visit Actionworks at www.actionworks.co, via LinkedIn at www.linkedin.com/company/actionworksco/, and via Twitter at www.twitter.com/cahouser.  

Cam can be contacted at http://bitly.com/camhouser, and via LinkedIn at www.linkedin.com/in/camhouser/.  

Music courtesy of Bensound.