Comments on: What is a Pre-money and Post-money Valuation?

By: MKb

MKb — Sat, 25 Jun 2011 14:51:56 +0000

We are a startup company & had invested Rs 5 million ,We are looking for 20 million rupees as P.E,What will be pre-valuation & post valuation of our company

By: Tobie

Tobie — Sun, 01 May 2011 13:43:40 +0000

Hi Ryan

Im in need of my second round funding for my Start Up in South Africa, i have the same investors willing to invest in round 2.

I need some assistance in the following :

My total capital need at start up was R 13 000 000 / $ 1.3 Million dollars

However, the Equity deal was structured at 50% investors / 50% me for R 3000 000 / $ 300 000 dollars first round.

Should i raise the next round of R 1000 000 / $ 1000 000 what Equity percentage will this entitle the investors?

We are now going to market, proto type has been built, so we need the funding to hire resources, fund operations and marketing.

Your help will be much appreciated.

By: Dr. Jerry

Dr. Jerry — Thu, 10 Feb 2011 19:28:31 +0000

Ryan,
I am a little fuzzy about how to figure the number of shares available and what that equates to as ownership percentage.

By: How to Evaluate an Offer from a Startup Incubator | Startup Lawyer

How to Evaluate an Offer from a Startup Incubator | Startup Lawyer — Sat, 05 Feb 2011 01:20:20 +0000

[...] low…really low. If an incubator offers your startup $25,000 in exchange for 6% equity, the pre-money valuation is a whopping [...]

By: A Peek Behind the Angel Curtain Reveals 3 Secrets to Attracting Money | Business Zone

Sun, 09 Jan 2011 09:52:29 +0000

[...] is the value of your company before the addition of the funds you are seeking. For example, company number 4 is seeking [...]

By: Mike

Mike — Fri, 07 Jan 2011 14:41:45 +0000

Has anyone created a simple spreadsheet that can do this easily?

By: A Peek Behind the Angel Curtain Reveals 3 Secrets to Attracting Money | Free Web Design Tucson

Fri, 07 Jan 2011 12:35:10 +0000

[...] is the value of your company before the addition of the funds you are seeking. For example, company number 4 is seeking [...]

By: InceptionLaunch » A Peek Behind the Angel Curtain Reveals 3 Secrets to Attracting Money

Thu, 06 Jan 2011 13:53:36 +0000

[...] is the value of your company before the addition of the funds you are seeking. For example, company number 4 is seeking $500,000 [...]

By: Simply_mich01

Simply_mich01 — Sun, 12 Dec 2010 07:49:00 +0000

for the Prevalue, is that just a projection or is it a REAL value? Assuming this is a start up, the company does NOT have any money and is looking for investors to fund the company 100%.

Can I say my company has a pre value of $100,000 even though I have not invested any on it?

By: Simply_mich01

Simply_mich01 — Sun, 12 Dec 2010 07:49:00 +0000

for the Prevalue, is that just a projection or is it a REAL value? Assuming this is a start up, the company does NOT have any money and is looking for investors to fund the company 100%.

Can I say my company has a pre value of $100,000 even though I have not invested any on it?

By: carlos

carlos — Wed, 29 Sep 2010 04:19:00 +0000

Hi,

But what about if you already have some income, you have not reached break-even yet and you want to calculate pre-money valuation. Imagine the company this year is going to loose $50.000 with an income of $350.000. You have already invest(unique investor) in the company $40.000 and you need $300.000. You expect break-even next year and with the posivite FCF year1=10.000 year 2=30.000 and year 3=50.000.

How would you make the evaluation?

Thanks

By: carlos

carlos — Wed, 29 Sep 2010 04:19:00 +0000

Hi,

How would you make the evaluation?

Thanks

By: Andrew

Andrew — Tue, 23 Mar 2010 22:11:04 +0000

good info Ryan. Thanks

By: Andrew

Andrew — Tue, 23 Mar 2010 22:11:00 +0000

good info Ryan. Thanks

By: King Featheroff

King Featheroff — Sat, 20 Mar 2010 23:30:07 +0000

You have got the position across much better than I ever might, thanks!

By: King Featheroff

King Featheroff — Sat, 20 Mar 2010 23:30:00 +0000

You have got the position across much better than I ever might, thanks!

By: RJ

RJ — Thu, 31 Dec 2009 04:14:31 +0000

Janet,

Value the company at what you think it's worth, just remember that doesn't mean the investors will agree. Simple example, if you need $300k and your willing to give say 30% equity for that investment your companies post-money valuation would be $1MM. Pre-money $700k.

If you want to give 40% use $300k/.4 which equals $750k post-money valuation.

Make sense?

By: RJ

RJ — Thu, 31 Dec 2009 04:14:00 +0000

Janet,

If you want to give 40% use $300k/.4 which equals $750k post-money valuation.

Make sense?

By: Janet

Janet — Mon, 31 Aug 2009 16:46:18 +0000

Ryan,
I'm still struggling with this concept a bit and need some help. I am in the process of starting a company and I seek investors. I currently guage my start-up expenses (including working capital) to be $250-300K. I seek to raise this money through investors. How would I value the company and what % can I offer investors?

By: Janet

Janet — Mon, 31 Aug 2009 16:46:00 +0000