Escalator Angel day last week was a great chance to reset the dial for many entrepreneurs, well I hope so.
Here is one investors company valuation model – not to different to the VC model we use in our workshops:
Work out what realistic valuation you expect to get on exit. Hint more trade sales are hit at around US$30M than any other mark (NZ$40M). Then calculate valuation today.
So if you wind the clock back 5 years (to today), based on a 30x return and a exit valuation of $40M, that mean today’s valuation must be $1.5M post money … say $1M pre money plus $500K investment for 33%