Valuation Questions


8 Votes
6 Answers
3.17K Views
How do you verify the viability of your idea?

I would like to hear from those folks that have gone through their initial market research and idea validation stages of their start-up and would like to share how they went about making sure their...

asked Apr 24 '12 at 12:34
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Victor S
141 points

4 Votes
2 Answers
2.2K Views
How to value a dev shop?

Suppose you run a small dev shop with 4 people (all software developers) and have been doing dev work for few clients. For one of these clients the dev shop dedicates about 70% of the time on...

asked Mar 15 '12 at 08:26
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Steven
21 points

1 Votes
1 Answers
2.07K Views
Valuing intangible assets in an LLC sale

Upon sale of an LLC, how would I express the values of intangible assets the LLC has generated (e.g. certain access rights, processes and procedures, IP, and customer relationships)? These are...

asked Jan 17 '12 at 03:46
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C Cummins
6 points

2 Votes
1 Answers
2.22K Views
Can we set NewCo's initial valuation at zero?

Background : Company A has developed a software product. Revenue is about $8K per month; margin is about 75% (after royalties). Debt owed to angel and family/friends investors is about $550K. The...

asked Nov 9 '11 at 09:50
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Starting Fresh
11 points

3 Votes
1 Answers
3.47K Views
Valuation for a B2B SAAS past prototype, but pre-launch?

This is a little complicated, but I have an interested group of angels asking for how much for 10%-20% of my company. I have no clue what to tell them, or what my valuation is. It is a B2B Saas...

asked Nov 12 '11 at 09:21
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Amanda
16 points

1 Votes
1 Answers
1.98K Views
How are investment funding valued when invested in a company before it goes public?

Is there are particular method for banks or individuals when their capital is invested in the company before going public. To make it more clear how was Facebook Inc. and Goldman Sachs deal valued...

asked Oct 10 '11 at 21:11
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Himanshu Prasad
51 points

1 Votes
2 Answers
2.64K Views
Investing in a start up, how to determine the value?

I'm considering investing in a company that a friend of mine has started, as a means to help him bring his plans to fruition quicker, and hopefully making a decent profit. The start up company is...

asked Oct 3 '11 at 10:37
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Pearson Art Photo
138 points

0 Votes
3 Answers
2.36K Views
What will happen if an individual invest in the company before it goes public?

Lets assume the example of Groupon which is going to be public this year or next year.Suppose if someone invests $100Million in the company,will its valuation increase for the individual or for its...

asked Oct 3 '11 at 18:34
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Himanshu Prasad
51 points

2 Votes
3 Answers
2.78K Views
Pair of engineers with code, should we walk away from founder? How much should we ask for ($$)?

TL;DR: Worked a year+ on code we still own, founder refuses to raise capital (wants to bootstrap) and is now low-balling us, we're willing to walk away--what would you do? Long version (detailed...

asked Oct 5 '11 at 19:35
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How To Use Our Leverage
11 points

6 Votes
3 Answers
2.32K Views
How to find a buyer for a software product company?

We've this 3 year old, profitable startup going steady We sell web templates and web apps Last 12 month's gross sale is over $1 million with 75% profitability Staff of 13 people working on...

asked Sep 21 '11 at 18:43
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Net Entrepreneur
31 points

2 Votes
1 Answers
1.95K Views
Valuations of a product sale

As a small development company we have worked on several projects concurrently using the revenue to bootstrap other projects. We now have reached a stage where we have several mature...

asked Sep 2 '11 at 09:51
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Tim Nash
1,107 points

3 Votes
3 Answers
5.13K Views
How to determine share value for a new company?

I'm in the process of setting up a company, and am trying to figure out what numbers to put in the Share Structure Table in the company registration form (download here ). I will be the sole...

asked Aug 4 '11 at 12:59
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Greg Sansom
130 points

0 Votes
4 Answers
2.26K Views
Determining the value of my online company for seeking funding

How do you calculate the worth of your company when you are looking for funding? If i sell my company outright today the value is about $200K but this does not mean that i will take on $100K...

asked Aug 9 '11 at 01:19
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Prashant
11 points

1 Votes
3 Answers
1.99K Views
Valuation Of Non-Existing Product/Business

Out of a team of three, two of us have decided that we need to part ways with the third partner. We want to buy her out, but we are struggling to value our venture and, therefore, don't have a clue...

asked Aug 10 '11 at 03:19
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Miles
130 points

2 Votes
3 Answers
4.26K Views
How should you value a SaaS company?

Given the following assumptions: Assume total investment (founders + seed) to a SaaS company is 100K After one year, the monthly net profit is 5K, and it is growing at around 10% monthly. What...

asked Jul 5 '11 at 02:20
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Jack
26 points

4 Votes
2 Answers
2.72K Views
Get acquired or raise more money?

If you can raise at a post-money valuation of $5MM and some company offered to acquired you, how much should you be asking for? I know it depends on a lot of things, but generally is it higher or...

asked Jun 16 '11 at 03:53
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Rihulo
33 points

1 Votes
4 Answers
3.19K Views
How to do pre-valuation of a web based startup?

We are a 3 month old, 3 part time team startup, working on a SaaS based web product. Can someone tell us how to do a pre-valuation of this startup? Well, just to add, our Alpha product is ready...

asked Jun 6 '11 at 05:39
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Essyum
6 points

2 Votes
2 Answers
3.7K Views
How can valuation of a company be measured based on page views?

I was wondering, if a site has lets say 1 million page views per month, how much does that make it worth? Similarly, for signed up users, lets say, a thousand signed up users - how much does that...

asked Jun 11 '11 at 01:10
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Genadinik
1,821 points

2 Votes
3 Answers
3.32K Views
Formulas for valuing an LLC for employee ownership plans

We're planning on offering some key early employees equity in our startup, an LLC, in the form of ownership shares. The benefits include: - proportional sharing in distribution of profits -...

asked May 5 '11 at 05:46
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Karl R
113 points

4 Votes
4 Answers
2.76K Views
Should a start-up always take funding when there is an opportunity?

I always hear Jason Calacanis say that if there is a chance to take an extra round of funding, the founders should do this. Is that really true? Does it increase valuation somehow? For example, if...

asked Apr 18 '11 at 16:04
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Genadinik
1,821 points