How do you determine the pre-money valuation for a web startup who`s business model is mainly advertising, sponsorship, and premium services revenues?Thanks
I think pre-money valuation should be a plug. To me I`d want to run all my financials with the new money I hope to obtain (5 yr DCF). Value the company and then fall backwards into a pre-money valuation. But, that is just me.
As an investor I have been quite frustrated by the lack of realistic expectations I found in many early stage company founders. I create this post to try to bring a dose of reality to the process. www.foundertransitions.blogspot.com/200 ... r-forecast s.html
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