The art of startup valuations with Brian Ellerman

Lessons about the art of valuations:

Listen to and take into consideration expert investor perspectives: Active angels are  seeing 100 or more presentations a month, and as a result they know what valuations are normal, expected and reasonable.Ensure you are able to explain your valuation:   Being able to back up the value of the company with evidence will be extremely important, especially if you are outside the realm of normal, expected or reasonable valuations.There needs to be room for growth: As Brian said, smart investors know not to eat the whole apple. If an investor takes half of the company, what’s left for the entrepreneur?    “The best investors have a very open dialog with founders about a fair valuation and reasonable sized portion”.   Ensure that as you’re putting together your valuation and offer you leave room for growth.

Episode Mentions:

Books and PapersEARLY-STAGE FUNDING: OPTIONS, SOURCES, AND CONSEQUENCES: A community-based white paper for aspiring and first-time foundersStartup Community by Brad FeldHedge: A Greater Safety Net For The Entrepreneurial Age by Nicolas ColinOrganizationsSunquestMadden Media University of ArizonaFORGEUArizona Center for InnovationDesert Angels - Joann MacMasterCommunity Investment Corporation - Danny KneeCommunity Investment Corporation - Carie DavisStartup Tucson - Liz PocockWeFunder - Johnny PriceJohn Deerie - Center for American EntrepreneurshipKauffman FoundationUA VC - Fletcher McCusker