Founder’s Pocket Guide: Startup Valuation

This updated edition includes several new features, including:

• The Startup Valuation Explorer calculator
• Expanded coverage of Valuation Methods
• Responding to investor questions about your valuation
• Understanding option pool impact on your valuation

• What a startup valuation is and when you need to start worrying about it.
• Key terms and definitions associated with valuation, such as pre-money, post-money, and dilution.
• How investors view the valuation task, and what their expectations are for early-stage companies.
• How the valuation fits with your target raise amount and resulting founder equity ownership.
• How to do the simple math for calculating valuation percentages.
• How to estimate your company valuation using several accepted methods.
• What accounting valuation methods are and why they are not well suited for early-stage startups.