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2answers
77 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 ...
2
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2answers
63 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 ...
0
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1answer
55 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 ...
0
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1answer
61 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 in ...
1
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1answer
63 views

What is most important in determing the monetary value of a startup? [closed]

Part of a startup is the (hopeful) sale in the end. Corporations often buy companies for revenue, but would you rather have a company with stronger revenue or net profit? For example: is a company ...
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2answers
86 views

Lawyer/advisor for evaluating (or help drafting) a startup's first offer [closed]

A profitable, single-founder web startup is making me an offer as the first employee (for CTO position). It's particularly hard to evaluate the offer because: This company has never received any ...
6
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2answers
513 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 advertising ...
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2answers
122 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 ...
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4answers
155 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 ...
1
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1answer
58 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 and ...
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4answers
143 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 SaaS ...
2
votes
3answers
157 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 ...
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3answers
201 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 in ...
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vote
1answer
145 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 ...
0
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1answer
171 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 up ...
1
vote
3answers
178 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 example, ...
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6answers
555 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 ...
4
votes
2answers
248 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 billable ...
1
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1answer
220 views

Valuation of a pre-launch startup?

I would like to ask, if there any guide available on how to valuate your start up even before you launch you product? I am in negotiation with some investors and really have no idea how to valuate my ...
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1answer
145 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 assets ...
3
votes
1answer
396 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 ...
2
votes
1answer
144 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 ...
1
vote
1answer
80 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 at ...
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4answers
313 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 and ...
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3answers
334 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 ...
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2answers
360 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 a ...
6
votes
3answers
258 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 site ...
2
votes
1answer
48 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 product/service ...
1
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3answers
167 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 as ...
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votes
4answers
188 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 ...
3
votes
3answers
2k 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 Director ...
2
votes
3answers
2k 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 ...
4
votes
2answers
324 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 ...
2
votes
2answers
521 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 ...
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4answers
764 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 and ...
2
votes
3answers
720 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 - ...
4
votes
4answers
308 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 ...
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3answers
1k views

Roughly how much is this start up worth?

I'm in the middle of negotiating an exit of a software startup company. My partner is interested in buying me out. We're negotiating on the valuation. Obviously a detailed analysis requires a lot of ...
1
vote
1answer
394 views

SaaS Startup (received Financial Grant) - Pre-Money Valuation !

We are a young B2B SaaS Startup operating in the Social CRM space. First time Entrepreneurs, but with plenty of experience in our respective areas of work. We've received financial grant of 50,000 in ...
2
votes
1answer
419 views

How much profit should a company be making before we can realistically value it at X amount of money?

I'm looking for a real world calculation for how much profit or projected profit we should expect a company to be making before we apply a valuation of X amount of money. What is a realistic ...
3
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5answers
451 views

What could the application startup color.com actually spend $41MM on?

Forget about whether this means we're in a bubble or all the talk about whether this was smart or not, but a new application company (social photo sharing) raised $41MM. They spent $500k on the ...
3
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2answers
280 views

MOU/LOI pre sales agreements and valuation

My company has proven technology to convert existing in use Heavy duty diesel engines to run on Natural Gas and pass current EPA/CARB emissions standards. This makes us a unique provider of a unique ...
5
votes
2answers
299 views

Computing Valuation of Custom Software

I've recently been approached by a potential partner to buy a piece of custom software that I have written, and I'm struggling with a way to value the software. They would like to buy the source code ...
4
votes
3answers
178 views

How do you account for your time when asked how much has been invested in the company so far?

A potential investor is asking us to account for our own (so far unpaid) time when evaluating the amount of money invested in the company to date. How do we account for it - it's not like we've been ...
5
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4answers
454 views

Old question again: how does one valuate the startup for VC purposes?

I've been running a bootstrapped startup since last year and am running into definite limitations as to what I can do without further funding. Startup enables elasticity for Microsoft's cloud ...
3
votes
3answers
154 views

Do you think a bubble is developing in tech valuations?

Do you think that ... Zynga, valuation $5.5 billion, is worth more than EA games? Or that Demand Media, valuation $1.5 billion, is worth as much as the NYT - When it lost $22 million in 2009 and $6 ...
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4answers
634 views

Pre-revenue Start-up valuation

How do I value a 5 yr old Pre-revenue start-up which has developed a Carrier and network independant Instant Communication Platform for mobile users.
1
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1answer
191 views

Calculating the valuation of a startup

I am going to join a start-up founded by one of my colleagues. He made a mobile app by which he won some prizes, and got funding from a government program. He is the only one in the company and he's a ...
0
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2answers
67 views

How might a non-profit public service website be valued?

Assume a website that provides a free service to a certain community (disability related). The site is run by a charitable foundation and there's no charge for the users of the site. There are 2 ...
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3answers
416 views

What would this website be worth? Based on venture capital 23 mil

A 3 year old site which makes money through ads has received 23 million in Series A,B, and C funding. Any guess as to what it might be worth? Four times funding? Five times? Just curious as to ...

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