Valuing Seed/Early stage companies

>>1578558
if only moot were here....

>>1578572
Um...

>>1578558

It depends on the type of company, but it will be driven by the target market size, share it can take, and probably the feasibility of technology, if it is fairly speculative. You are usually wasting time if you try to build out a full blown DCF for a startup - estimating revenue (or user growth or something that's more intrinsic to the company's operation) for the next few years and applying a multiple from some comparable companies is usually more realistic.

I was involved with a startup (nothing to do with technology) that talked about raising money from some of the PE/VC investors who specialize in the space, but it was just too small of a ticket for them to get interested. We instead raised money from angel investors - we got a much, much, much better deal from them. Professional investors will want to be more involved in the company, which can be good or bad.

Aswath Damodaran's "The Dark Side of Valuation" talks a little about valuing early stage companies.

>>1578558
I'm one stage before you. Having difficult times getting in touch with VC's to work with and pitch. We have our product and software complete and just need funding for FINRA licensing in order to move to the next step.

How'd you go about connecting with VC's.

>>1578558

VC's don't try to put a value on the company, they invest in an idea they believe in and set up the structure of the terms/contract that pays them well for it. Although a post-money valuation is attached to the terms that they offer, it is not the same as a valuation. I literally have friends at startups that don't understand this crucial difference. The numbers thrown around are NOT valuations, they are valuations in the best-case exit scenario.

As for the rest of the stuff you asked--it's too vague. I don't think even you know what you're asking.

>>1579071
Solid advice!
Know your exit strategy if you get VC involved.
My 2 cents