| Topic Name: |
vc valuation |
| Message Name: |
People, people, people |
| Date Posted: |
04/03/2002 |
| In Reply To: |
I am going to be joining a vc firm in July I was wondering how do you value early stage technology companies? I have a banking background (no help). Thanks everyone. |
| Message: |
I am sure the previous comments have been most helpful - in at least showing the level of emotion a topic like valuation can give rise to. You said you were joining an early stage VC - congrats, get lots of sleep b4hand, once you are in the game it gets compulsive.
Early stage VC requires a value judgement on the people involved. Once you work out you have an A team with a great, sustainably competitive concept/company attacking a large market then you can figure on valuations. Your firm will have parameters, as someone else mentioned - make sure you know these and what terms to induce at various levels of investment.
As for IRR, NPV, DCF etc ... get to know them from a corporate finance text book, but they are not going to your tools of trade - look a CEO incumbent in the eyes and tap his/her passion -- if it's there, take the next step.
Randal@tribalweave.com
Early stage VC
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