Entrepreneur

How VCs Value Companies

How do you measure the value of a pre-revenue company? Here's a bit of insight.
Source: Paul | Flickr

Over the years, I’ve heard plenty of entrepreneurs and VC colleagues talk about pre-product, pre-revenue and pre-profit valuations as if they can all be lumped into distinct categories. But while this type of analysis is part of the art and negotiation of early-stage company valuations,

You're reading a preview, sign up to read more.

More from Entrepreneur

Entrepreneur8 min read
The Best Ideas Are the Ones That Make the Least Sense
Think business is all about rational thought and logic? Think again -- and to find the biggest, best ideas, start thinking way outside the box.
Entrepreneur3 min read
By Supporting Its Franchisees, Kona Ice Enables Them To Better Serve Local Communities
The shaved-ice franchise focuses on community engagement to build year-round demand for the warm-weather treat.
Entrepreneur3 min read
Small Team? No Problem. Here's How to Multitask With Efficiency.
Asking staff to take on multiple responsibilities doesn't have to mean chaos. Here's how to keep the office calm, happy, and productive.