Hi there, I was never expecting to be in a position where VC would be on the table for my firm but for a variety of reasons its looking like taking VC money may not be a bad idea. so I've had this question pop up a few times but am now in a position where I'm expecting to be asked it soon.
I have an R&D company which doesn't have any significant hard assets yet what would be considered industry standard for establishing value?
As far as I'm concerned these numbers are all pretty much witchcraft, but I have financial projections going out to about 7 years (we will be in R&D for ~2 years after funding before selling a single thing)
Would it be fare to just look at revenue after X# of years to find a starting position for a Premoney valuation?
If a large chunk of future company value will be in capital assets vs revenue flows how would it be better to use total liability/equity to make a premoney valuation?
any and all help/input is greatly appreciated!