Early Stage Valuations - A Venture Capital Approach
At Valuecruncher we have been seeing a number of companies approach us for valuation advice that are initiating discussions with venture capitalists (VCs). VCs are specialist investors that focus on investing in early-stage companies – where both the risks and rewards are significant.
Understanding how VCs approach valuation is very important for the owners of early-stage businesses. At Valuecruncher we have seen disputes between company owners and VCs over valuation that have prevented deals progressing. This is a shame – potentially for both parties. Aiming to improve this situation the first Valuecruncher Newsletter for 2007 attempts to explain the approach that VCs take to valuing companies they are looking to invest in.
Valuecruncher Newsletter: Early Stage Valuation - A Venture Capital Approach