Tuesday, January 3, 2017

Lessons Learned Seeking Funding -- A better way to value your startup


  1. the size of the existing market
  2. the size of the potential market
  3. when the potential market will go from potential to existing
  4. will the existing market sustain the existing industry profitably
  5. how much of the existing market do you need to survive.   can you get it.  when.
  6. how much of the potential market do you need to be profitable.  can you get it.  when.
  7. discount this backwards to today.
  8. discount it further by the risk.
  9. your investor won't want to stay in forever.  when can they exit?
  10. step back and see if these numbers make sense.

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