All Entries in the "Valuation" Category

Shark Tank (Part 2): 5 Things the Show Gets Right

[Guest post by Brant Bukowsky, the founder of GrowthPartner.com -- a firm that provides angel investment and online marketing expertise to emerging companies. A serial entrepreneur, Bukowsky and his team have built three Inc. 500 companies in the last five years. He blogs at Angel Investment Journal.]

This is the second in a two-part series.

In Part [...]

Shark Tank (Part 1): 5 Things the Show Gets Wrong

[Guest post by Brant Bukowsky, the founder of GrowthPartner.com -- a firm that provides angel investment and online marketing expertise to emerging companies. A serial entrepreneur, Bukowsky and his team have built three Inc. 500 companies in the last five years. He blogs at Angel Investment Journal.]
This is the first in a two-part series.
ABC’s reality [...]

Angel Investing: Dilution Preventive Measures (Part 3)

This is Part 3 of our quest to answer a reader’s question on dilution.
The reader writes -
How do you prevent being washed out as you keep pro-rata and the numbers get increasingly bigger?
Suppose you invest $200k for 25%. The venture then raises $5m, so to keep pro rata you do $1.25m of that round. Then [...]

Bruno Bensaid: “Startups need cash, then value. No cash, they die.”

Whether you visit news sites or flip open the newspaper, you’ll see that Chinese entrepreneurs and the state of economy in China are garnering some serious ink. To learn more about China’s angel investing scene and general investing practices, Venture Hype got in touch with Shanghai-based investor Bruno Bensaid.
Bensaid is the founder of MobileMonday Shanghai, [...]

How to Value a Startup Part 9: Alphabet Soup

If you’ve been following our “How to Value a Startup” series (part 1, 2, 3, 4, 5, 6, 7, 8), you already know that we recommend a collage method that helps angels derive a number of valuations to get a fuller picture of the “art.” We’ve been on the quest for numerous valuation models and [...]

How to Value a Startup Part 8: Weighty Issues

This is post number 8 in a series of posts (part 1, 2, 3, 4, 5, 6, 7) about valuations. By now you’ve read that we embrace a “collage” valuation model that helps you arrive at several approximate valuations and gives you an idea about a potential investment’s worth.
Comments from all of you have been [...]

How to Value a Startup Part 7: Simple Simon Met a Pieman

“Would you rather have a big piece of a small pie or a small piece of a big pie?” was the question posed to me early in my career. I always wondered: “Exactly how big are these pieces of pie?
That is the question in this post; the next in a series of posts (part 1, [...]

How to Value a Startup Part 6: Online Estimators

If you watch a single episode of the TV show Lost, you might find yourself scratching your head in utter confusion, asking yourself “What the $%#$ was that all about?”. But if you were to sit down and watch the show from the beginning, it would make much more sense. (Or so I’ve been told; [...]

How to Value a Startup Part 5: Anything You Can Do I Can Do Better

Since the startup you’re thinking about investing in doesn’t yet run like a regular revenue-generating business, you can either contact Wanda the Discount Psychic for a valuation or you have to roll up your sleeves and apply some elbow grease to arrive at your own number.
I’m not sure what elbow grease is. It’s something my

How to Value a Startup Part 4: The 5 Years Out Concept

Before you buy a car you kick the tires and sniff the interior. When investing in a startup, you need to do something similar; even though there aren’t tires to kick or interiors to sniff. You need to figure out what the value of the startup is to help you determine if it’s worth investing [...]