Pre-Money Valuation for a Web Startup

kamolahy

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

InactiveMember

Ah, pre-money valuation ... a fun topic ... find some comparables. Comparables are often very useful in valuation.

MNGrillGuy

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.

LTrachtman

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

infinique

It all depends on the traffic. For web traffic, you need to check on the Alexa ranking.