Mayo615's French Odyssey Week 34 Report - VC Valuation
Channel: Mayo615
Date: 2019-12-13

Hello! 
…and welcome to the Week 34 Update of Mayo615’s French Odyssey and how to transform Big Ideas into Big Realities. There are numerous ways to raise money for your venture. If your Big Idea has real value potential, you will most likely choose equity funding, or venture capital. But the value of the thing for sale is only what the parties agree. So, I want to offer this very brief introductory primer on the basics of valuation.  There are no direct comparisons possible among startups so there are only basic general guidelines. A VC will likely ask you to share your previous round post-money valuation. It is a straightforward question, and most likely available to the VC on Pitchbook. But they are looking for your answer and a fit with their firm. Not all VC’s will be a good fit for your company, so you need to do some homework on the VC’s you want to approach. The second question may be how much money you have raised to date. This will help them to determine if you have been efficient with the capital you have raised. Are you a lean over-achiever, or not showing much progress?  These are only the openers. Beyond that you should find an experienced advisor, prepare carefully for a delicate negotiation and hopefully building a relationship. Don’t proceed alone.
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