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How do you value your startup pre-money and pre-revenue when seeking an investment round?

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How do you value your startup pre-money and pre-revenue when seeking an investment round?
posted Jan 30, 2018 by Adarsh

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The textbook approach is that you create a financial model with projections for, say, 5 years. You calculate your margins, then your free cash flow. Then using DCF method you calculate discounted cashflows and terminal value of the company. Then you take expected a return (IRR) for the investor, which is about 80-100% at such an early stage and discount the result back. That's how you will get the value of the company.

answer Jan 31, 2018 by Debolina Charaborthy
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