various valuation techniques and their disadvantages

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What are the various valuation techniques and the disadvantages of each as it relates to valuing a new start-up venture?

Oct 18th, 2015

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Valuation of a startup is estimating the worth of it [3]. Pre-money valuation is used by venture capitalist and private equity [1] before the company receives any financing. There can be a few rounds of financing for a corporation. Investors such as venture capitalist, private equity, or angel investors may use this valuation in order to evaluate how and how much to invest.

Post-money valuation is the value of a corporation after some money has been invested in a corporation [2]. This valuation takes into account the pre-money valuation and any new investment.



[1] Pre-money valuation. In Wikipedia. Retrieved October 2015, from http://en.wikipedia.org/wiki/Pre-money_valuation

[2] Post-money valuation. In Wikipedia. Retrieved October 2015, from https://en.wikipedia.org/wiki/Post-money_valuation

[3] Valuation. In Wikipedia. Retrieved October 2015, from http://en.wikipedia.org/wiki/Valuation_%28finance%29

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Oct 18th, 2015

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