Valuation of a Startup: Pre-Money vs Post-Money Valuation What is Valuation? Valuation is the value of a company. Valuing startups is a different ball game than valuing established companies because of associated high level risk in many areas such as customer base, industry, patents , primary competitors, revenues, absence of industry guidelines etc. Also, valuation at ’ early stages’ of a startup is more about its “growth potential" and not so much about the present value of the company. It means that if the company’s valuation today is $1m , it does not mean that the entrepreneur can sell it for $1m. It just means that depending upon factors like prior exits of the entrepreneur ( if any ), customer base targeted and many other qualitative factors the company is assigned a value. For details: Pre-Money Valuation Post-Money Valuation Price/Share Are HIGH pre-money valuations good? Visit: arushibhandari.tumblr/tagged/Startups
Posted on: Thu, 11 Jul 2013 06:22:47 +0000