Comments on: How to Value a Startup Part 1: Is It Unknowable?

By: China Steels the Show! | Venture Hype

China Steels the Show! | Venture Hype — Sat, 21 Nov 2009 17:15:35 +0000

[...] company. The merger deal could be worth at least US$5 billion, considering Angang Steel’s current market valuation, the newspaper [...]

By: Silicon Valley Ready to Make a Comeback? | Venture Hype

Silicon Valley Ready to Make a Comeback? | Venture Hype — Wed, 28 Oct 2009 17:02:23 +0000

[...] of the key drivers for the re-emergence of Silicon Valley is valuations are more realistic and entrepreneurs are hungrier for sound partnerships with angels and venture [...]

By: Sandra Cochrane of NBIA: Commercialization Strategies for Tech Startups | Venture Hype

Thu, 22 Oct 2009 17:21:01 +0000

[...] far as what a pre-seed tech company is worth, pre-seed valuations are notoriously difficult given the risk and uncertainty still on the table. Any company is only [...]

By: crimson45

crimson45 — Mon, 24 Aug 2009 08:59:59 +0000

Understanding how to value your start up is very important, with out it you are basically throwing your money away. Knowing the right figures will basically help you but it all takes time and needs your patience.

By: crimson45

crimson45 — Mon, 24 Aug 2009 01:59:59 +0000

By: The Hyper Team @ Venture Hype

The Hyper Team @ Venture Hype — Sat, 25 Jul 2009 10:57:06 +0000

Yes, cliché but true -- valuing a startup is more art than science. At the end of the day, the value of a startup is determined by how much the market will accept. Having said that, as an investor, you’d want to attract quality deal flow and outstanding entrepreneurs by maintaining a good reputation. Which means you have to play fair and value the company reasonably.

By: jamesb

jamesb — Sat, 25 Jul 2009 03:00:03 +0000

Thank you for this very informative article. It is can be rather easy to valuate an existing business as you have data and figures to look at. With an idea or new business you can only go on what the potential revenue might me.

By: How to Value a Startup Part 4: The 5 Years Out Concept | Venture Hype

How to Value a Startup Part 4: The 5 Years Out Concept | Venture Hype — Tue, 14 Jul 2009 19:02:46 +0000

[...] researching this week’s contribution to the “How to Value a Startup” series (part 1, 2, 3), I came across two similar calculations from two different thinkers in the startup field. [...]

By: The Hyper Team @ Venture Hype

The Hyper Team @ Venture Hype — Fri, 10 Jul 2009 07:24:11 +0000

You're right. Valuing a startup is an art and we attempt to approach this with a "collage method." That is, we'll look at different aspects of the business to form a clearer picture of the value of a company.

Sure, one can always seek professional help, such as accountants and lawyers, to value a company. But this would incur costs and is more appropriate when all parties are committed to close the deal. Some people just want to find out a ballpark figure before making their next steps, and we try to deliver this information to those who are interested.

Of interest, accountants tend to undervalue startups whereas lawyers tend to overvalue.

By: tongyun

tongyun — Tue, 07 Jul 2009 15:00:54 +0000

Start ups are probably the most abstract of all businesses to review in order to determine if they have the potential to become a viable and thriving entity. As the article states, it's no place for lazy investors. You really have to know what you are looking at and how to look at it before deciding if you'll throw your money behind it. It's like looking at a 20-side die. You can look at it and see all of the numbers, but it just takes time and patience.