It is possible to value an early-stage company. In fact, most seed stage startups are valued this way, without carrying out complex valuations or projections. However, this makes the valuation highly uncertain, since the financial projections are also part of a company’s business model validation. Another important weakness is that without a financial plan, Read more about HOW TO VALUE A STARTUP WITHOUT A FINANCIAL PLAN[…]
Strategy is a general word that can be assigned to a variety of different business aspects. It is basically a plan of action that determines how your business is going to develop. What makes creating an effective strategy more challenging is the multitude of possibilities and the different parts of the businesses that may Read more about LAYING OUT YOUR STRATEGIC ROADMAP[…]
PHYSICAL PRODUCTS Working on your customer base potential is the first step to building reliable financial projections for startups. To start, we can analyse one of the most common types of revenue stream for businesses: the sale of physical products. How to calculate products sold correctly, prices, volumes, customer preferences, inventory and other direct costs. Read more about HOW TO CALCULATE REVENUE PROJECTIONS AND DIRECT COSTS[…]
When we value a company, we value its equity (the Market Value of Equity) to determine the price paid for a transaction (acquisition, financing or other) where the investor receives ownership, which is an equity stake. The valuation can take place also for information purposes for debt financing, but it is mostly relevant for equity Read more about THE BASICS OF STARTUP VALUATION[…]
Once you have set a target number of customers to reach, how do you reach these customers? Now that you have projected your customer base, you can calculate your marketing and sales costs and split these costs into the different channels that you are using. By doing so, you can validate every channel and Read more about How to calculate the cost of your market expansion: Customer Acquisition Costs[…]
Trees grow in size by first expanding their roots in the soil. Every specie of tree is different and it may need a different structure and acidity of the soil. Some need larger and deeper spaces to grow their roots to develop to their full potential, some need less. Different species grow at different speeds, Read more about What kind of soil you need to grow your roots: Sizing the Market[…]
Your ideal financing strategy is closely connected to your milestones. This is an example of milestones for a startup, this does not represent how funding rounds take place in all situations. Funding depends on a variety of factors. It‘s also possible to have multiple smaller seed rounds, as it‘s happening now in the market, and Read more about Strategy planning for early-stage startups: How to reduce risks[…]
Funding cycles and the startup story go hand in hand. Planning out the financing strategy is something that many founders overlook. When raising funds, possibilities are limited to the type of company that you have: so it’s very important to know what is available to you before you decide on a strategy, especially if the Read more about Is startup funding right for you?[…]
The length of the fundraising process varies, no necessarily based on the amount raised, but based on the founders’ and company’s experience. Founders that are very well connected will be able to raise money faster, while startups may find that as their business model becomes increasingly safer and the validation has taken place, funding rounds Read more about The process and documents needed when approaching investors[…]