Más contenido relacionado La actualidad más candente (20) Similar a Startup Valuation for Angel Investors (20) Más de Foresight Valuation Group (11) Startup Valuation for Angel Investors1. June 18, 2014
Efrat Kasznik, Founder & President
Foresight Valuation Group, LLC
Startup Valuation
for Angel Investors
2. 2Foresight Valuation Group © 2014
About Me: Efrat Kasznik
Founder and President, Foresight Valuation Group, a
Silicon-Valley based Intellectual property (IP) valuation,
strategy and start-up advisory firm.
Valuation and strategy expert, with 20 years of
experience analyzing IP portfolios across industries
Lecturer, Stanford Graduate School of Business
Chair, Cloud Committee, Licensing Executives
Society (LES)
Top IP strategists, IAM 300 List 2013-2014
Co-founder, CFO and Advisor to startups and
incubators in the US and Europe, including: Stanford
Venture Lab, The HUB Trieste, Astia Angel Fund
3. 3Foresight Valuation Group © 2014
The Startup Equity Valuation
Timeline
Seed
Funding
Stock
Options
Series
A, B, C
M&A
IPO
Available Information
Low High
4. 4Foresight Valuation Group © 2014
Angel Investment & Valuation
Angel Invest?
Priced
Not
Priced
Convertibl
e
Note
No
Fit
Preferred
Stock
How
to
Invest
?
5. 5Foresight Valuation Group © 2014
Angel Funding: The Valuation
“Triangle”
Funds
Raised ($)
Ownership
(%)
Valuation
($)
< $1M
20%-40%$2.5M
6. 6Foresight Valuation Group © 2014
Angel Valuation Case Study:
Floome Smartphone Breathalyzer
Customers
Production
FulfillmentFinancials
Team
7. 7Foresight Valuation Group © 2014
Three Valuation Methods
VC Valuation Approach
Adjusted Comparable Valuation Approach
Heuristic Approaches (experience based)
Example - Dave McClure’s 5 Points
8. 8Foresight Valuation Group © 2014
$20
Million
$100
Million
$5
Million
$2.5
Million
5X
Exit Multiple
70-80%
Discount Rate
= 20x ROI
Revenu
e in
Year 5
Value
in Year
5
VC Valuation Approach:
At Exit Point (Year 5)
Value
Today
50% future
dilution
Fully
Diluted
Value
Today
9. 9Foresight Valuation Group © 2014
VC Valuation Approach:
Industry Standard Discount Rates
• 80%+Seed
• 50-70%Angel
• 40-60%Series A
• 30-50%Series B
• 25-35%Bridge
Sources: How Venture Capital Works , Harvard Business Review
A Method for Valuing High-Risk Long-Term Investments, Harvard Business School
12. 12Foresight Valuation Group © 2014
Angel Valuation Considerations
Benchmark
s
Company
Metrics
Your
Investme
nt
Objective
s
External
Factors
• Market Size
• Partnerships
• Regulation
• Litigation
• Funding & Exits
• Comparables
• Future Trends
• Target ROI
• Exit Horizon
• Team
• Product
• Execution (Beta)
• IP portfolio
13. 13Foresight Valuation Group © 2014
The Dave McClure
Five “Million Dollar Point”
Approach*
Revealed by Dave McClure (500 Startups) at a
TechCrunch Disrupt Event (2011)
Each “point” worth $1M:
1. Market
2. Product
3. Team
4. Customers
5. Revenue
>> Maximum: $5 Million
* Efrat’s 6th point: IP (patents)>> add another $1M
14. 14Foresight Valuation Group © 2014
Angel Valuation Resources
Angel Resource Institute
www.angelresourceinstitute.org
Fenwick & WestSeed Financing Survey 2012 of
Internet/Digital Media and Software Industries
Silicon Valley Bank: The HALO Report 2013
Center for Venture Research
https://paulcollege.unh.edu/cvr
15. THANK YOU!
Presentation available upon
request
Efrat Kasznik
President, Foresight Valuation
Group
ekasznik@foresightvaluation.co
m
650-561-3374
http://www.linkedin.com/in/ekasz
nik