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?


Size of Beta Tests or Early Revenue?


Value of Intellectual Property?

Trade Secrets


Pending Patents


Proprietary Processes




Value of Management Expertise?



Vice President


Financial Officer


Technology Officer


Market Size & Capture Meaningful Share?


Value of Intangibles?

(Click on headings to list intangibles)

Other 1


Other 2


Other 3


SCT Founder Valuation

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




Exit Value


Target I-Multiple

ar-down 10 ar-up

Pre-Money Valuation


Post-Money Value


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


Sound Idea or Business Model


Demonstrable Working Prototype


Quality of Board Members


Rollout or Sales Plan


Dave Berkus Pre-Money Valuation


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)
Multiply Risk Factors Typically by $250,000

Risk Factor Pre-Money Valuation


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.