Entrepreneurship & Innovation

Startup valuations

morreale Tuesday 27 of August, 2013
AlleyWatch has posted 10 Rules of Thumb for Startup Investment Valuation. The rules include:
  • Place a fair market value on all physical assets
  • Assign real value to intellectual property
  • All principals and employees add value
  • Early customers and contracts in progress add value
  • Discounted Cash Flow (DCF) on projections
  • Discretionary earnings multiple
  • Calculate replacement cost for key assets
  • Look at the size of the market and the growth projections for your sector
  • Assess the number of direct competitors and barriers to entry
  • Find “comparables” who have received financing