Valuation Questions


2 Votes
2 Answers
3.87K Views
Figuring out how much equity to give to angel investors for seed capital?

My startup is in the very early stages. We have a very raw prototype and haven't launched yet and so have no revenue either.Two angel investors are interested in putting $20,000 each in our startup...

asked May 30 '15 at 13:41
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Darlene Vera
11 points

1 Votes
1 Answers
3.63K Views
Company interested in acquiring our startup. How do we calculate a valuation?

We are a bootstrapped company of three. Our primary competitor is interested in acquiring us (acqui-hire). How do we place a value on our startup? Since we don't have any revenues or a huge user...

asked May 15 '14 at 10:40
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Angela Williams
7 points

3 Votes
2 Answers
3.35K Views
How do I determine angel investor equity?

I have an opportunity to purchase a company. We're still working on the purchase price, but let's assume $100K for purposes of discussion. I do not have $100K. I would need to find an investor to...

asked Mar 31 '14 at 17:58
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Carson McComas
1,023 points

2 Votes
1 Answers
2.56K Views
Valuing a SaaS startup which has a large number of free members (and no paid plan yet for monetization)?

I'm going to helping a friend try and sell a service of his which is completely free to users. It's a social media tool similar to ManageFlitter.He has a large number of active users. The service...

asked Mar 5 '14 at 17:27
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Violet Phillips
155 points

0 Votes
1 Answers
2.47K Views
bussiness valuation and equity meaning

I watch a lot of Shark Tank and Dragon's Den and I was wondering what are the consequence to give away lower equity than expected? For instance, let's say my company value is 200k and I'm offering...

asked Dec 6 '13 at 12:34
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Julian Livin' In China
1 point

1 Votes
2 Answers
2.8K Views
Valuing a Social Technology startup using EBITDA makes sense?

We're finalizing the details of a new shareholders agreement but we're stuck at setting the EBITDA multiple that will get used for future valuation of the company. The agreement was written by one...

asked Jul 4 '13 at 18:24
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Shreef
21 points

1 Votes
2 Answers
2.42K Views
Valuing a business based on time spent

We are a small online business that has been running for a couple of years. We have an annual turnover of around £35,000, profit on which is around £10,000. We haven't spent much time or effort on...

asked May 12 '13 at 10:29
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User26210
6 points

0 Votes
1 Answers
1.86K Views
financial ratio for start-ups

I'm building a Saas B2B startup and I'm wondering what kind of multiples are used to estimate future exit valuations. Price/earning ratio, price/sales ratio? For instance, if I plan to build a...

asked Mar 7 '13 at 11:47
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Frenchie
4,166 points

2 Votes
2 Answers
2.53K Views
Receiving non-qualified stock options before a startup has a valuation

I've been reading that under 409a regulations, if non-qualified stock options are issued below fair market value, there are immediate tax implications and a 20% penalty. I've been working part-time...

asked Mar 19 '13 at 04:34
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Kevin Victor
11 points

0 Votes
2 Answers
2.15K Views
Start-up valuation

When you are dealing with potential investors, they will be able to do valuation, I hope, but again, they are looking after their own interests. I assume it is a good idea to have your own numbers...

asked Feb 28 '13 at 04:43
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Usabilitest
1,698 points

6 Votes
2 Answers
5.75K Views
How much is a website with 100k monthly unique visitors worth?

I recently saw in the news that Punchfork.com was acquired by Pintrest.com for an undisclosed amount. Given Punchfork.com has 100,000 monthly visitors and 80,000 lines on Facebook but no...

asked Jan 7 '13 at 16:30
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Craig H
33 points

1 Votes
2 Answers
2.4K Views
Should I give an investor equity for a short term investment?

We are not so much a start up company; been doing business for over 7 years and started off with an investor which was considered a loan with interest. Now we are up to receive anywhere from...

asked Nov 16 '12 at 18:01
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Andrea Wilson
6 points

1 Votes
4 Answers
3.07K Views
Does building upon open source software affect company valuation positively?

Most startups and quick-risers promoted publicly are building intellectual property on top of open source software stacks. Aside from avoiding upfront investments towards license, is there any...

asked Oct 5 '12 at 03:49
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Ronaldwidha
106 points

1 Votes
1 Answers
2.01K Views
Evaluating an online venture on the basis of user acquisition and traffic

How can I evaluate my online venture on the basis of traffic and user acquisition to estimate the value of my company and do financial projections. Say, an online venture has 1000 registered users...

asked Sep 19 '12 at 03:42
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Sourabh
288 points

1 Votes
4 Answers
2.68K Views
What to do when an investor ask for a percentage of future revenues

We have a profitable hardware and SaaS business. some clients want to obtain a 12-month financing to buy our hardware. we need extra money to allow it. that would increase our monthly income by...

asked Aug 24 '12 at 02:14
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Sd Reyes
156 points

2 Votes
3 Answers
2.4K Views
Valuation for a manufacturing company

I own a small brewery and I need some help valuing it. In operation 18 months Annual gross revenue is around $30,000 (like I said, we're small) $200,000 in cash We expect to use about $110,000 of...

asked Aug 7 '12 at 04:10
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Dean Brundage
256 points

0 Votes
3 Answers
2.91K Views
How much is my code/product worth?

I wrote two Apps and want to know how much they are worth. Background: for one I am looking for an investor / somebody who wants to buy it. For the second one I am just interested to know the price...

asked Jun 16 '12 at 17:48
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Christian
3,590 points

1 Votes
1 Answers
2.18K Views
Evaluating initial contribution in a business startup

Here’s a business scenario involving two persons: Person A: - has business strategy and technology road map for a line of business in software - has 4-5 customer prospects who are interested in...

asked Jun 6 '12 at 18:45
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Aaron Smothers
56 points

1 Votes
3 Answers
2.43K Views
how would one come up with an early valuation for a content/community based startup (like twitter, pinterest)

I'm trying to generate a reasonable valuation for my content/community based startup. It has not launched yet. How do content/community based startups come up with their first valuation. For...

asked May 6 '12 at 02:09
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Marc
113 points

0 Votes
1 Answers
2.48K Views
dilution of stock options for a company going through multiple rounds of funding?

How can I have an idea of the dilution of employee stock options for a company that is going through different rounds of funding? For example, a company that has received a total of $100M funding...

asked May 7 '12 at 22:02
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6152142613526
68 points