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The Resource Center has all the info you'll need From content to user feedback, the resource center has the information you need for every level of the entrepreneurial process.
A highly successful angel investor and entrepreneur identifies and puts to the test a valuation calculator tool. He finds that it works very well, thank you. By answering twenty-five questions, entrepreneurs and investors arrive at valuations that can reasonably be used as a practical guide to investing.
An important voice in the angel investing world, Luis Villalobos has contributed a practical new term--"valuation divergence"--that focuses on a little understood fact of angel investing: Returns on investments in a company do not increase in direct proportion to the company's market valuation. Entrepreneurs and investors alike will benefit from a better understanding of this concept.
Numerous factors affect how angels value a company. Primary are the strength of the management team and the size of the opportunity, or a company's potential to scale. Accompanying this article is a valuation worksheet that entrepreneurs can use to better understand what investors look for and to identify factors that can justify higher pre-money valuations. Investors will find it useful to compare companies and determine whether valuation should be higher or lower.
Valuation negotiations between entrepreneurs and investors are often contentious. Such valuations rarely stray from the $1 million to $3 million range for seed/startup companies that angels expect to grow to $50 million to $100 million over five to eight years. Angels are most concerned about the management team's ability to rapidly grow the company and about helping the entrepreneur achieve these growth objectives.
Understanding your break-even point can help you establish a range of profitable prices and give you insight into how much you must sell to meet costs.
Bootstrapping is a tactic to help you spend less cash and therefore need less to operate your business. This article discusses ways to bootstrap your business operations.
As you read this article, consider the critical preparation necessary to approach bankers and investors with your business proposal.
This article will provide you with a starting point for understanding your financial statements. In it you will find guidelines for the type of information you need and suggestions on how to review it.
This article discusses the advantages and disadvantages of obtaining needed cash through alternative sources that may not be typically considered. It also discusses specific sources that may provide the cash needed.
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