Posts Tagged 'Scorecard Method'

Startup Valuations: Using Several Methods to Determine the Pre-money Valuation of Pre-revenue Companies

March 4 2011 2 Commented

Since the end of January, we have posted explanations of five methods for establishing the pre-money valuation of pre-revenue companies, specifically:                 The Scorecard Method (January 31, 2011)                 The Venture Capital Method (February 5, 2011)                 The Dave Berkus Method (February 14, 2011)                 The Cayenne Valuation Calculator (February 19, 2011), and                 The […]

Startup Valuations: The Risk Factor Summation Method

February 27 2011 No Commented

The Risk Factor Summation Method 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 […]

Startup Valuations: The Cayenne Valuation Calculator

February 19 2011 9 Commented

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 […]

Startup Valuations: The Dave Berkus Method

February 14 2011 No Commented

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 […]

Startup Valuations: The Venture Capital Method

February 5 2011 18 Commented

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 […]

Startup Valuations: The Scorecard Method

January 31 2011 2 Commented

Wise entrepreneurs and investors use multiple methodologies to establish the appropriate pre-money valuation for pre-revenue startup companies, because no single method is particularly effective at this early stage.  Valuation at the time of investment, of course, is critical in determining the percentage of ownership that investors purchase from entrepreneurs in a round of investment.   I […]