Pre-Money Valuation for a Web Startup

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Pre-Money Valuation for a Web Startup

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kamolahy

posts: 54

Mar 29, 2007 10:46 AM ET Quote Report Abuse

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How do you determine the pre-money valuation for a web startup who`s business model is mainly advertising, sponsorship, and premium services revenues?

Thanks

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Collin Cummings
President, Drop Box, LLC
dropboxmail@gmail.com

Raisecapital02

posts: 301

Mar 29, 2007 11:25 AM ET Quote Report Abuse

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You would have to determine this amount based on advertising, fees, website setup cost, maintenance, cash flow, programming, up to 6 months salaries, and other factors that affect the way to website functions.

InactiveMember

posts: 705

Mar 29, 2007 5:22 PM ET Quote Report Abuse

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Ah, pre-money valuation ... a fun topic ... find some comparables. Comparables are often very useful in valuation.

Raisecapital02

posts: 301

Mar 31, 2007 12:45 PM ET Quote Report Abuse

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What have you came up with so far?

MNGrillGuy

posts: 236

Apr 02, 2007 12:26 PM ET Quote Report Abuse

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I think pre-money valuation should be a plug. To me I`d want to run all my financials with the new money I hope to obtain (5 yr DCF). Value the company and then fall backwards into a pre-money valuation. But, that is just me.

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Travis Tschepen
Hibachi Bros. LLC

--My goal in life is to be as good of a person my dog already thinks I am.--

LTrachtman

posts: 1

Apr 08, 2007 5:46 AM ET Quote Report Abuse

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As an investor I have been quite frustrated by the lack of realistic expectations I found in many early stage company founders. I create this post to try to bring a dose of reality to the process. www.foundertransitions.blogspot.com/2007/03/founder-forecast s.html

infinique

posts: 145

May 23, 2010 12:55 PM ET Quote Report Abuse

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It all depends on the traffic. For web traffic, you need to check on the Alexa ranking.

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Seo Consultant | Cure Autistic Adults | Industrial For Rent | Business Park

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Pre-Money Valuation for a Web Startup

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