How to value your growth-stage company for crowdfunding




Everyone Funding Startups show

Summary: This week on the Everyone Funding Startups podcast we spoke to Boaz Vinagradov of Navocate, which provides business sales and acquisition services for entrepreneurial companies. Dealing with valuations in an early-stage company is one of the most common issues we hear from entrepreneurs looking to raise capital through crowdfunding. It is and important issue not only in the short-term, because the amount of equity you’re looking to give away in your round can determine whether you successfully raise capital or not, but also in the long-term, as you think about scaling up in future funding rounds. We asked Boaz how he helps entrepreneurs think about different methodologies for valuing their companies. You can listen to the podcast by clicking here or by subscribing to the Everyone Funding Startups iTunes channel. 00:10 Introduction to Boaz Vinogradov and Navocate 01:20 What are the main principles behind valuing emerging companies and how do they differ from valuing publicly-listed companies? 09:20 Which methodology did Facebook had in mind when it valued Instagram? 12:00 Is there a place for ‘soft’ factors such as the team’s experience or the strength of culture in startup valuations? 19:55 What kind of additional data can help the valuation process for startups? 25:10 How can the ‘crowd’ learn how to invest in the new asset class of startups? 31:10 How can our listeners get in touch with you and with Navocate? 31:45 End You can read more on valuation models by reading Boaz’s blog post entitled Business Valuation: Sell-Side, Buy-Side, and Soft-Side, and by going to Navocate’s website, www.navocate.com. You can also reach Boaz directly at boaz@navocate.com and +1 (888) 900-5866, Ext. 2. Thanks for tuning in to this week’s episode of Everyone Funding Startups. Check out our new podcast page at EveryoneFundingStartups.com. And you can now interact with the show on twitter @growVCpodcast. Let us know what you want to hear…we’re listening.