Shark Cap TableTM

Make a Deal and Keep Your Arms and Legs TM

Pre-Money Valuation Methods

We utilized original materials from an excellent article written by venerable Angel Investor, Bill Payne. A link to his website has been provided at the end. We added controls to automate the calculation, and added our own Pre-Money Valuation Method. Try each one, average the results and use it to set Pre-Money Value in HOME.

Data from Pre-Money Valuation Methods will be saved with a HOME Scenario. You can keep the same Pre-Money Data or change the data for each Home Scenario you make. Valuation Data will be sent with the XLS file to your login-email.

Creates talking points for Pre-Money Value negotiations

Cash Invested by Founders and Others?

$0

Size of Beta Tests or Early Revenue?

$0

Value of Intellectual Property?

Trade Secrets

$0

Pending Patents

$0

Proprietary Processes

$0

Software

$0

Value of Management Expertise?

President

$0

Vice President

$0

Financial Officer

$0

Technology Officer

$0

Market Size & Capture Meaningful Share?

$0

Value of Intangibles?

(Click on headings to list intangibles)

Other 1

$0

Other 2

$0

Other 3

$0

SCT Founder Valuation

$0
Shark Cap Table Founder Valuation $0
Venture Capital Method $0
Dave Berkus Method $0
Risk Factor Summation Method $0
Bill Payne or Score Card Method
1-- Average of 1 Methodology $0
2-- Average Angel Pre-Money Valuation
3-- Average of Averages $0

Determines Allowable Pre-Money Value to Reach Goals

From HOME
$81,000

Investment

$0
From HOME
$3,250,000

Exit Value

$0

Target I-Multiple

ar-down 10 ar-up

Pre-Money Valuation

$0

Post-Money Value

$0

Post-money Valuation = Exit Value ÷ Target Investment Multiple
Pre-money Valuation = Post-money Valuation – Investment

Suggested total is $2.5 million at $500,000 each, but could be more.

Management Expertise and Experience

$0

Sound Idea or Business Model

$0

Demonstrable Working Prototype

$0

Quality of Board Members

$0

Rollout or Sales Plan

$0

Dave Berkus Pre-Money Valuation

$0

Positive Risk Factor is LESS RISK & Higher Pre-Money Valuation.

+2 -- very positive for company growth and a great exit

+1 -- positive

 0  -- neutral (factor does not impact valuation)

-1 -- negative for company growth and a wonderful exit

-2 -- very negative

Pop-up HELP is the opinion of Bruce Badeau

1 -- Management 1 ar-down ar-up
2 -- Stage of the business 1 ar-down ar-up
3 -- Legislation/Political risk 1 ar-down ar-up
4 -- Manufacturing risk 1 ar-down ar-up
5 -- Sales and marketing risk 1 ar-down ar-up
6 -- Funding/capital raising risk 1 ar-down ar-up
7 -- Competition risk 1 ar-down ar-up
8 -- Technology risk 1 ar-down ar-up
9 -- Litigation risk 1 ar-down ar-up
10 -- Reputation risk 1 ar-down ar-up
11 -- Potential lucrative exit 1 ar-down ar-up
SUM of Risk Factors
(negative is higher risk)
0
Multiply Risk Factors Typically by $250,000

Risk Factor Pre-Money Valuation

0

Bill Payne or Score Card Method

This is a more subjective and complex method that needs local historical pre-money valuation data. We strongly suggest reading venerable Angle Investor, Bill Payne's white paper about this methodology. His website is a treasure trove of exceedingly useful information about Angel Investing and Start-ups, and we made extensive use of his article on Pre-Money Valuation Methodologies.