Equity Investments: How Do I Value My Company?
For many that are raising capital for their startup, the key question is how do I value my company? Valuation of the company is the basis for determining the amount of equity one gives up to an investor for a given amount of investment. Agreeing on a valuation with your potential investor may be one of the more challenging discussions you will have. Recently, one of my clients asked this question as they were getting ready to raise a round of funding.
Insights from the Raising Capital Seminar
Rather than try to explain it myself, I pointed them to a video from our Raising Capital Seminar from earlier this year. Peter Bonstrom of LWBJ Capital Advisers presented on this topic and did an outstanding job of providing an overview of the various methods used to set a valuation.
Check out the video below:
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