Valuations of Early-Stage Companies Tool

Frame the valuation discussion with some objective, but debatable, criteria.

Ask any founder of a pre-revenue company and they will tell you about the great potential their company has and its high likelihood of success.  Those optimistic feelings will be reflected in the high valuations they assume for their sure-winner.  Potential investors, based on their experience and more objective outlook, will likely have very different opinions.  Using some more objective criteria to the very subjective valuation discussion can help both parties arrive at an acceptable number.