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Valuations 101: The Risk Factor Summation Method

The Risk Factor Summation Method is the fifth methodology for estimating the pre-money valuation of pre-revenue companies we have described in recent posts. Readers may have noted that both the Scorecard Method and the Dave Berkus Method considered a narrow set of important criteria for investment in arriving at a pre-money valuation. The Risk Factor Summation Method, described by the Ohio […]
Bill Payne
Bill Payne , Angel Investor , Frontier Angel Fund
15 Nov 2011
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Valuations 101: The Cayenne Calculator

We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. The High Tech Startup Valuation Estimator is an online tool developed by Cayenne Consulting to assist entrepreneurs and investors in estimating the pre-money valuation of startup enterprises. This calculator uses 25 questions to […]
Bill Payne
Bill Payne , Angel Investor , Frontier Angel Fund
7 Nov 2011
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Valuations 101: The Dave Berkus Method

We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. Dave Berkus is a founding member of the Tech Coast Angels in Southern California, a lecturer and educator.  He has invested in more than 70 startup ventures.   Dave’s valuation model […]
Bill Payne
Bill Payne , Angel Investor , Frontier Angel Fund
2 Nov 2011
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Valuations 101: The Venture Capital Method

We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. The Venture Capital Method (VC Method) was first described by Professor Bill Sahlman at Harvard Business School in 1987 in a case study and has been revised since. It is one of […]
Bill Payne
Bill Payne , Angel Investor , Frontier Angel Fund
1 Nov 2011
Valuation. You keep using that word. I do not think it means what you think it means.

Valuations 101: Scorecard Valuation Methodology

Individual accredited investors in typical angel round deals put personal capital at risk for an equity share of growth-oriented, start-up companies. These angel investors generally invest $25,000 to $100,000 in a round totaling $250,000 to $1,000,000. In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 million and is established by negotiations between the […]
Bill Payne
Bill Payne , Angel Investor , Frontier Angel Fund
20 Oct 2011