Comments on: Startup Valuation - The VC Method http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/ Thoughts from Silicon Valley Sun, 06 Jul 2008 20:38:36 +0000 http://wordpress.org/?v=2.0.3 by: ” Fans 2.0: Wem gehört der Fußball? » ring2* http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-37896 Tue, 01 Apr 2008 16:03:21 +0000 http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-37896 [...] Die Zahlen bedeuten, der Verein ist gesund. Nun kann man höchst wissenschaftlich den Wert des Start-Ups FCSP anhand diverser Methoden ermitteln, wie der “Discounted Cash-Flow“-Methode oder das so machen, wie damals in dem Handelshaus in dem ich lernte. Man trank da einen oder zwei Schnaps, sah sich den aktuellen Umsatz an und legte nochmal soviel drauf. Nach eine Weile, bei Anwendung der Methode, sieht man dann die Zahl 34 Millionen. [...] […] Die Zahlen bedeuten, der Verein ist gesund. Nun kann man höchst wissenschaftlich den Wert des Start-Ups FCSP anhand diverser Methoden ermitteln, wie der “Discounted Cash-Flow“-Methode oder das so machen, wie damals in dem Handelshaus in dem ich lernte. Man trank da einen oder zwei Schnaps, sah sich den aktuellen Umsatz an und legte nochmal soviel drauf. Nach eine Weile, bei Anwendung der Methode, sieht man dann die Zahl 34 Millionen. […]

]]> by: The VC Method of Startup Valuation : Fair or Unfair http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-14347 Thu, 30 Aug 2007 16:54:22 +0000 http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-14347 [...] This post from Ryan Junee describes is one of the most widely used (often called the ‘VC method’) using a simple scenario of a company that takes only one round of venture financing, and then show how this method can be expanded to handle multi-stage financing, stating: “The first thing we need to calculate is a ‘terminal value’ for the company. That is, a value at some point (say 5 years) in the future. This point may be an expected liquidity event (IPO or acquisition), or failing that should be a point where the company is at least earning a profit… [...] […] This post from Ryan Junee describes is one of the most widely used (often called the ‘VC method’) using a simple scenario of a company that takes only one round of venture financing, and then show how this method can be expanded to handle multi-stage financing, stating: “The first thing we need to calculate is a ‘terminal value’ for the company. That is, a value at some point (say 5 years) in the future. This point may be an expected liquidity event (IPO or acquisition), or failing that should be a point where the company is at least earning a profit… […]

]]> by: Web 2.0 startup valuation: Social Networks « SatpalParmar’s Weblog http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-13130 Fri, 17 Aug 2007 11:02:04 +0000 http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-13130 [...] 2.Startup Valuation - The VC Method [...] […] 2.Startup Valuation - The VC Method […]

]]> by: links for 2007-08-14 « thebadtiming http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-12883 Tue, 14 Aug 2007 23:25:57 +0000 http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-12883 [...] Startup Valuation - The VC Method at Ryan Says… (tags: vc valuation finance investment startup venture) [...] […] Startup Valuation - The VC Method at Ryan Says… (tags: vc valuation finance investment startup venture) […]

]]> by: ayla annac http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-11464 Mon, 30 Jul 2007 20:01:35 +0000 http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-11464 saikiran and Ryan, I need any valuation information for early biotechnology companies. Could you share your inf sources. Thanks saikiran and Ryan,

I need any valuation information for early biotechnology companies. Could you share your inf sources. Thanks

]]> by: Ryan Lee http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-10723 Fri, 20 Jul 2007 13:14:15 +0000 http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-10723 Ryan, Are you on LinkedIn (add me if you are)? I know this article is aged a little, however I think what you have spelled out is the best assessment of VC in terms of technology startups. I just completed a Corporate Finance MBA course and found this after the fact. I think it would have been valuable. I am working on a technology startup and have done quite a bit of research. I found your article to be the most fruitful! Kudos on your diligence. Regards, Ryan L. Ryan,

Are you on LinkedIn (add me if you are)? I know this article is aged a little, however I think what you have spelled out is the best assessment of VC in terms of technology startups. I just completed a Corporate Finance MBA course and found this after the fact. I think it would have been valuable.

I am working on a technology startup and have done quite a bit of research. I found your article to be the most fruitful!

Kudos on your diligence.

Regards,

Ryan L.

]]> by: saikiran shetty http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-8134 Sat, 23 Jun 2007 13:03:33 +0000 http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-8134 hi ryan, i'm a final year mba student doing my project on VC valuation of biotech companies. i need data regarding VC deals and their valuation methods used. i'd be very grateful if you could help. thank you. hi ryan,
i’m a final year mba student doing my project on VC valuation of biotech companies. i need data regarding VC deals and their valuation methods used. i’d be very grateful if you could help. thank you.

]]> by: Les http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-2670 Sun, 08 Apr 2007 09:19:55 +0000 http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-2670 That's a whole lot more science than what likely goes on. Try this out for an investor's perspective. A pretty good reality check on founder's notion of value. http://foundertransitions.blogspot.com/2007/03/founder-forecasts.html L That’s a whole lot more science than what likely goes on. Try this out for an investor’s perspective. A pretty good reality check on founder’s notion of value. http://foundertransitions.blogspot.com/2007/03/founder-forecasts.html

L

]]> by: Ryan Junee http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-19 Fri, 13 Oct 2006 23:49:01 +0000 http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-19 Hi JC, There is an extensive discussion of discount rates in the HBS case I reference in the post. However, the particular 'rule of thumb' numbers I used here were taken from some lecture notes in a class called <a href="http://www.stanford.edu/class/msande273/" rel="nofollow">Technology Venture Formation</a> at Stanford. Hi JC,

There is an extensive discussion of discount rates in the HBS case I reference in the post. However, the particular ‘rule of thumb’ numbers I used here were taken from some lecture notes in a class called Technology Venture Formation at Stanford.

]]> by: JC http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-15 Tue, 10 Oct 2006 17:08:24 +0000 http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-15 Hi Ryan, I was wondering where you quoted/obtained the discout rate percentages for different stages of companies? I am doing some research and would appreciate papers or essays where I pcould find data that shows this information. Hi Ryan,
I was wondering where you quoted/obtained the discout rate percentages for different stages of companies? I am doing some research and would appreciate papers or essays where I pcould find data that shows this information.

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