Enterprise Software
We currently have about $125,000 - $600,000 potential revenue. I say potential revenue because we have about $200,00 to $600,000 worth of customers testing the product, we were to close all of them it would be $600,000 in revenue.
3
Answers
technology innovation and business development
There is no valuation until you sell something. An idea or a company is only worth what its sales are. Once you have your initials sales, sales strategy and forecasting length (ie 9 months from first customer lead to close) then you have a formula for valuation. Valuation for start-ups is generally 3.5 x last years sales model should be the growth factor. When you are looking for investors, you will want to have atleast 9-18 months of SALES, not just pipeline and they will be looking at 5x revenue for a 3-5 year payback.
Answered almost 10 years ago
Clarity's top expert on all things startup
Generally, seed stage enterprise companies are raising between $4,000,000 - $6,000,000 pre-money depending on team, location and early traction.
Happy to speak to you to provide more specifics unique to your situation.
Answered over 10 years ago
šHarvard Certified Global Corporate Trainerš
Accurate Pre-money valuation is not possible. It depends on a lot of factors for any enterprise. These factors are:
1. Geography
2. Supply and Demand
3. Industry
4. Exit Value
5. Cap-Table
6. Founders Incentive
7. Revenue Multiple
8. Investors Profiles
9. I.P.
10. Health of Economy
I can help you to calculate it though. Remember, the pre-money valuation of a company comes before it receives any funding. But this figure does give investors a picture of what the company would be valued at today. Calculating the pre-money valuation is not difficult. But it does require one extra stepāand that is only after you figure out the post-money valuation. Here is how you do it:
1. Pre-money valuation = Post-money valuation - investment amount
Let us use the example from above to demonstrate the pre-money valuation. In this case, the pre-money valuation is $27 million. That is because we subtract the investment amount from the post-money valuation. Using the formula above we calculate it as:
2. $30 million - $3 million = $27 million
Knowing the pre-money valuation of a company makes it easier to determine its per-share value. To do this, you will need to do the following:
3. Per-share value = Pre-money valuation Ć· total number of outstanding shares
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
Answered about 4 years ago