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Pre-Money Valuation for a Web Startup

    • 52 posts
    March 29, 2007 6:46 AM EDT
    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

    • 88 posts
    May 23, 2010 7:55 AM EDT

    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

    • 394 posts
    March 29, 2007 1:22 PM EDT
    Ah, pre-money valuation ... a fun topic ... find some comparables. Comparables are often very useful in valuation.
    • 154 posts
    April 2, 2007 7:26 AM EDT

    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.--

    • 1 posts
    April 8, 2007 12:46 AM EDT
    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