That will help me in analyzing the formula incorporated in the sheet.

Many thanks

All the early stage seed funding that VCs talk about is often for startups who have been in operation for 1-2 year and has built some revenue stream. Once you have revenue going, and can base future financial projections based on this, standard methods like revenue-multiplier (using related listed company’s P/E value as benchmark) is quite commonly applied.

The key issue with very less clarity is when an angel invests in a pre-revenue startup. Often its just a thumb-rule valuation based on the team and business plan. All financial projections and valuations end up being your guess versus mine. How do we bring more logic to this? Would appreciate inputs on valuation of early-stage pre-revenue companies.

Thanks.

2) How are intangible asset valuation been considered here ? Patents or other IPR for example. This is something most VCs never appreciate here.

from my lil experience in dealing with vc’s, early stage valuation is a nightmare. None knows what’s the real price (which doesnt exist anyway) and figures are all perceptive. Value early angel gives, are mostly disregarded by following VC.

Party with more say gets the bigger pie. here vcs take up undue advantage. Other set of people doesnt value at all and invest as convertible equity w/o premium.

Wish there was an INDEPENDENT ORGANIZATION which could rate pre-revenue or early stage ventures JUST for fund raising. Until then, this remains a blackhole.

High-light is the picture … even if you kiss-ass “Don Haz the checklist”