ENTP 3301 Lecture Notes - Lecture 18: Passion Pictures, Economic Model
9 Sep 2016
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Document Summary
How do you calculate valuation in the early states: figure out how much money you need to grow to appoint where you will show significant growth and raise the next round, 5 20% of company. Where in that range should it be: depends. What factors influence valuation: traction general market valuation, number 1 (confidence, presentation, presales, Revenues may lower valuation if they inhibit growth: distribution channel deals to keep others from using distribution, hotness of industry. Do you need a high valuation: not necessarily, a high seed valuation means you need to grow a lot before the next round. Within 18 months you should grow 10 times. If you don"t, you raise a down round or run out of cash. Two strategies: go big or go home, raise as you go. Investor perspective: exit how much can this company sell for.
