valuations methods | Wall Street Financier: Notes from High Altitude© https://wallstreetdealmaker.com He who makes a beast out of himself gets rid of the pain of being a man. Sat, 29 Feb 2020 04:48:49 +0000 en-US hourly 1 https://i0.wp.com/wallstreetdealmaker.com/wp-content/uploads/2018/12/pitbullgif.gif?fit=32%2C22&ssl=1 valuations methods | Wall Street Financier: Notes from High Altitude© https://wallstreetdealmaker.com 32 32 155119938 Founder’s Dilemma https://wallstreetdealmaker.com/2020/02/founders-dilemma/ https://wallstreetdealmaker.com/2020/02/founders-dilemma/#respond Sat, 29 Feb 2020 04:45:18 +0000 https://wallstreetdealmaker.com/?p=1988 Pre-seed is the first outside investment entrepreneurs receive into their business after bootstapping and F&F (family and friends). Chris Corbishley, an Investor at Forward Partners, a UK VC fund, has good words of advice on structuring and negotiating those early investments. (link). Read that along with their pre-seed Term Sheet . … Continue ReadingFounder’s Dilemma

The post Founder’s Dilemma first appeared on Wall Street Financier: Notes from High Altitude©.]]> Pre-seed is the first outside investment entrepreneurs receive into their business after bootstapping and F&F (family and friends). Chris Corbishley, an Investor at Forward Partners, a UK VC fund, has good words of advice on structuring and negotiating those early investments. (link). Read that along with their pre-seed Term Sheet .

“A concept known as the ‘Founder’s Dilemma’ reveals the importance of making some hard choices before even approaching VCs for investment. As startups grow, entrepreneurs face a dilemma. On the one hand, they must raise resources to grow their business. If they choose the right investors, they can outperform.

In fact, HBS research shows that founders who gives up more equity to attract good people and investors, build a more valuable company than ones who part with less equity. The founder ends up with a more valuable slice, too.

On the other hand, in order to attract investors and executives, founders must give up a degree of control over decision-making as a quid pro quo.”

Chris Corbishley

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This is the only male blog in the world where we incorporate music and or playlists into the posts.

The post Founder’s Dilemma first appeared on Wall Street Financier: Notes from High Altitude©.]]> https://wallstreetdealmaker.com/2020/02/founders-dilemma/feed/ 0 1988 How do Angel investors value a business with no revenues ? https://wallstreetdealmaker.com/2016/08/how-do-angel-investors-value-a-business-with-no-revenues/ https://wallstreetdealmaker.com/2016/08/how-do-angel-investors-value-a-business-with-no-revenues/#respond Tue, 30 Aug 2016 14:00:00 +0000 http://wallstreetdealmaker.com/index.php/2016/08/30/how-do-angel-investors-value-a-business-with-no-revenues/ There are 5 methods for establishing the pre-money valuation of pre-revenue companies, specifically: The Scorecard Method (Bill Payne) -most widely used: takes into account  6 to 7 factors  and assigns them a weighted factor based on the strength/weakness (+/-) percentage of norm:  Strength of the Management Team         … Continue ReadingHow do Angel investors value a business with no revenues ?

The post How do Angel investors value a business with no revenues ? first appeared on Wall Street Financier: Notes from High Altitude©.]]> There are 5 methods for establishing the pre-money valuation of pre-revenue companies, specifically:

  1. The Scorecard Method (Bill Payne) -most widely used: takes into account  6 to 7 factors  and assigns them a weighted factor based on the strength/weakness (+/-) percentage of norm: 

  • Strength of the Management Team                              0-30%
  • Size of the Opportunity                                                 0-25%
  • Product/Technology                                                      0-15%
  • Competitive Environment                                              0-10%
  • Marketing/Sales Channels/Partnerships                       0-10%
  • Need for Additional Investment                                     0 –5%
  • Other                                                                             0 –5%


    2.The Venture Capital Method -based on an exit price and exit timeline (let’s assume 3 to 7 years), the current value is an NPV calculation.

    3. The Dave Berkus Method developed by Dr Dave Berkus of Tech Coast Angels.

    4. The Cayenne Valuation Calculator uses 25 questions answered convervatively to determine the progress of the venture

    5. The Risk Factor Summation Method

      For Biopharma industry visit   Dr. Aitana Peire and Dr. Patrik Frei have published an article “What is the value of a deal? in the biopharmadealmakers supplement June 2016 edition of nature biotechnology and Nature Reviews Drug Discovery.

Why Do Celebrities Invest in Start-ups and Venture Capital

It’s the bang for the name buck. The greatest marketing is in a name. It’s rocket-fueled product development. It develops traction. It’s what led Kobe Bryant to team up with Jeff Stibel in a $100 MM TMT Venture Capital fund. “ …in fact, Kobe designed the company’s new logo with inspiration from piano keys.“


The post How do Angel investors value a business with no revenues ? first appeared on Wall Street Financier: Notes from High Altitude©.]]> https://wallstreetdealmaker.com/2016/08/how-do-angel-investors-value-a-business-with-no-revenues/feed/ 0 342