Comments on: How to Value a Startup Part 3: Keeping Up With the Joneses http://venturehype.com/how-to-value-a-startup-part-3-keeping-up-with-the-joneses/ Where Venture Angels Ignite™ Tue, 27 Jul 2010 18:24:52 +0000 hourly 1 http://wordpress.org/?v=abc By: How to Value a Startup Part 8: Weighty Issues | Venture Hype http://venturehype.com/how-to-value-a-startup-part-3-keeping-up-with-the-joneses/comment-page-1/#comment-651 How to Value a Startup Part 8: Weighty Issues | Venture Hype Fri, 21 Aug 2009 10:49:47 +0000 http://venturehype.com/?p=2117#comment-651 [...] posted as a comment by Dan Doromal on Venture Hype using [...] [...] posted as a comment by Dan Doromal on Venture Hype using [...]

]]> By: How to Value a Startup Part 4: The 5 Years Out Concept | Venture Hype http://venturehype.com/how-to-value-a-startup-part-3-keeping-up-with-the-joneses/comment-page-1/#comment-566 How to Value a Startup Part 4: The 5 Years Out Concept | Venture Hype Mon, 27 Jul 2009 19:03:44 +0000 http://venturehype.com/?p=2117#comment-566 [...] 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. [...] [...] 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 http://venturehype.com/how-to-value-a-startup-part-3-keeping-up-with-the-joneses/comment-page-1/#comment-2574 The Hyper Team @ Venture Hype Fri, 10 Jul 2009 20:21:23 +0000 http://venturehype.com/?p=2117#comment-2574 As <a href="http://venturehype.com/veteran-i-banker-greg-proto-part-i-raising-the-next-round/" rel="nofollow">seasoned I-banker Greg Porto told us in an interview</a>, when valuing a startup, he’d look at things like:<br><br>- market size and potential market share<br>- valuation of comparable companies<br>- financial forecasts and discounted cash flow scenarios<br>- current and future capital needs<br>- prior investments in the company<br>- value of intellectual property<br>- the management team’s track record and capability<br>- demand and competitive advantage of the product or technology<br>- quality of the board of directors, board of advisors, technology/industry advisors<br>- proposed deal terms<br><br>Valuing a startup is an art. Even so, we try to reduce subjectivity by looking at different aspects of the business. We hope you'll find the information useful. As seasoned I-banker Greg Porto told us in an interview, when valuing a startup, he’d look at things like:

- market size and potential market share
- valuation of comparable companies
- financial forecasts and discounted cash flow scenarios
- current and future capital needs
- prior investments in the company
- value of intellectual property
- the management team’s track record and capability
- demand and competitive advantage of the product or technology
- quality of the board of directors, board of advisors, technology/industry advisors
- proposed deal terms

Valuing a startup is an art. Even so, we try to reduce subjectivity by looking at different aspects of the business. We hope you'll find the information useful.

]]> By: The Hyper Team @ Venture Hype http://venturehype.com/how-to-value-a-startup-part-3-keeping-up-with-the-joneses/comment-page-1/#comment-2573 The Hyper Team @ Venture Hype Fri, 10 Jul 2009 20:07:51 +0000 http://venturehype.com/?p=2117#comment-2573 Isn’t a series great? We'll gradually spit out the info in digestible bits. <br><br>Truth is, we love to leave people hanging ;-) Sadistic. We know. Isn’t a series great? We'll gradually spit out the info in digestible bits.

Truth is, we love to leave people hanging ;-) Sadistic. We know.

]]> By: The Hyper Team @ Venture Hype http://venturehype.com/how-to-value-a-startup-part-3-keeping-up-with-the-joneses/comment-page-1/#comment-2572 The Hyper Team @ Venture Hype Fri, 10 Jul 2009 20:01:09 +0000 http://venturehype.com/?p=2117#comment-2572 Of course no two companies are the same. This is to give a ballpark figure and some idea of what to consider when valuing a startup. <br><br>Yes, the quality of the founding team is definitely one of the most, if not the most, important aspect to consider when deciding whether or not to invest in the startup. Of course no two companies are the same. This is to give a ballpark figure and some idea of what to consider when valuing a startup.

Yes, the quality of the founding team is definitely one of the most, if not the most, important aspect to consider when deciding whether or not to invest in the startup.

]]> By: The Hyper Team @ Venture Hype http://venturehype.com/how-to-value-a-startup-part-3-keeping-up-with-the-joneses/comment-page-1/#comment-509 The Hyper Team @ Venture Hype Fri, 10 Jul 2009 13:21:23 +0000 http://venturehype.com/?p=2117#comment-509 As <a href="http://venturehype.com/veteran-i-banker-greg-proto-part-i-raising-the-next-round/" rel="nofollow">seasoned I-banker Greg Porto told us in an interview</a>, when valuing a startup, he’d look at things like:<br><br>- market size and potential market share<br>- valuation of comparable companies<br>- financial forecasts and discounted cash flow scenarios<br>- current and future capital needs<br>- prior investments in the company<br>- value of intellectual property<br>- the management team’s track record and capability<br>- demand and competitive advantage of the product or technology<br>- quality of the board of directors, board of advisors, technology/industry advisors<br>- proposed deal terms<br><br>Valuing a startup is an art. Even so, we try to reduce subjectivity by looking at different aspects of the business. We hope you'll find the information useful. As seasoned I-banker Greg Porto told us in an interview, when valuing a startup, he’d look at things like:

- market size and potential market share
- valuation of comparable companies
- financial forecasts and discounted cash flow scenarios
- current and future capital needs
- prior investments in the company
- value of intellectual property
- the management team’s track record and capability
- demand and competitive advantage of the product or technology
- quality of the board of directors, board of advisors, technology/industry advisors
- proposed deal terms

Valuing a startup is an art. Even so, we try to reduce subjectivity by looking at different aspects of the business. We hope you'll find the information useful.

]]> By: The Hyper Team @ Venture Hype http://venturehype.com/how-to-value-a-startup-part-3-keeping-up-with-the-joneses/comment-page-1/#comment-508 The Hyper Team @ Venture Hype Fri, 10 Jul 2009 13:07:51 +0000 http://venturehype.com/?p=2117#comment-508 Isn’t a series great? We love to leave people hanging ;-) Sadistic. We know. Isn’t a series great? We love to leave people hanging ;-) Sadistic. We know.

]]> By: The Hyper Team @ Venture Hype http://venturehype.com/how-to-value-a-startup-part-3-keeping-up-with-the-joneses/comment-page-1/#comment-507 The Hyper Team @ Venture Hype Fri, 10 Jul 2009 13:01:09 +0000 http://venturehype.com/?p=2117#comment-507 Of course no two companies are the same. This is to give a ballpark figure and some idea of what to consider when valuing a startup. <br><br>Yes, the quality of the founding team is definitely one of the most, if not the most, important aspect to consider when deciding whether or not to invest in the startup. Of course no two companies are the same. This is to give a ballpark figure and some idea of what to consider when valuing a startup.

Yes, the quality of the founding team is definitely one of the most, if not the most, important aspect to consider when deciding whether or not to invest in the startup.

]]> By: Ricardo http://venturehype.com/how-to-value-a-startup-part-3-keeping-up-with-the-joneses/comment-page-1/#comment-492 Ricardo Wed, 08 Jul 2009 10:58:35 +0000 http://venturehype.com/?p=2117#comment-492 That's an interesting point about researching a company that's creating something new. With the new technology available, that must be more of a consideration than it was in recent decades. <br><br>It's great to have resources like the ones mentioned above to work with when trying to forecast the prospects of a venture. That's an interesting point about researching a company that's creating something new. With the new technology available, that must be more of a consideration than it was in recent decades.

It's great to have resources like the ones mentioned above to work with when trying to forecast the prospects of a venture.

]]> By: Dan Doromal http://venturehype.com/how-to-value-a-startup-part-3-keeping-up-with-the-joneses/comment-page-1/#comment-491 Dan Doromal Tue, 07 Jul 2009 21:31:20 +0000 http://venturehype.com/?p=2117#comment-491 In the early, early stages of a company, they could be negative or worth close to nothing (<$10,000). This would be based on your asset-liability calculation. My question is if there are comps in the industry that are worth $50 million then where do you go from there? Do an average of $10k and $50 mil? haha. Where does this collage method start to take considerations as to which valuation holds more weight? In the early, early stages of a company, they could be negative or worth close to nothing (<$10,000). This would be based on your asset-liability calculation. My question is if there are comps in the industry that are worth $50 million then where do you go from there? Do an average of $10k and $50 mil? haha. Where does this collage method start to take considerations as to which valuation holds more weight?

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