{"id":2174,"date":"2019-04-22T19:01:59","date_gmt":"2019-04-22T13:31:59","guid":{"rendered":"https:\/\/pitch.link\/blog\/?p=2174"},"modified":"2019-06-21T19:08:42","modified_gmt":"2019-06-21T13:38:42","slug":"how-green-is-my-valley","status":"publish","type":"post","link":"https:\/\/pitch.link\/blog\/how-green-is-my-valley\/","title":{"rendered":"How green is my valley?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">If you are planning to raise money from Angles of VC\u2019s you need to understand how your venture is likely to be valued. Basically it is a black box with broad strokes. How each parameter corresponds to value is still unknown as it varies widely from one investor to the other. Specially if you have generated interest from multiple VC\u2019s.\u00a0<\/p>\n\n\n\n<!--more-->\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/media.licdn.com\/dms\/image\/C5112AQET_D2TrkcG1w\/article-inline_image-shrink_1500_2232\/0?e=1566432000&amp;v=beta&amp;t=UDxDVXXn7GNM3y096V3MWcFeWXocQS5TcqyLhIu-GeM\" alt=\"How green is my valley? \"\/><\/figure><\/div>\n\n\n\n<p><strong>Jason Calacanis<\/strong>\u00a0is one prolific and super successful angel. He is behind the extremely popular startup podcast\u00a0<em>\u201cThis week in Startups\u201d<\/em>\u00a0and also the \u2018<em>Inside<\/em>\u2019 newsletters. He was the founder of Mahalo &#8211; the human curated web index.\u00a0<\/p>\n\n\n\n<p>Jason has deep understanding of the funded startup game and is super active with very defined positions on many contentious issues. He is never afraid of voicing his opinions and I respect him for that, even if I do not agree at times.\u00a0<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/media.licdn.com\/dms\/image\/C5112AQFu78CKw0a5IQ\/article-inline_image-shrink_1500_2232\/0?e=1566432000&amp;v=beta&amp;t=78GoeUIgbWiPRYqsTWEcPjWj39ZhcG-2nRq5OQSlqBo\" alt=\"Jason Calacanis\" width=\"500\" height=\"750\"\/><figcaption><strong>Jason Calacanis<\/strong><\/figcaption><\/figure><\/div>\n\n\n\n<p>His recent post of&nbsp;<em>The Valuation Vs Traction Matrix<\/em>&nbsp;(he says it is work in progress) has some very pertinent points that founders need to pay attention to. \u201c<em>Startup valuations are not science, but they\u2019re not magic either. It\u2019s a bit of alchemy, combined with bizarre marketplace dynamics like famous founders getting 3x the price for half the traction,\u2026<\/em>\u201d writes Jason.&nbsp;<\/p>\n\n\n\n<p>For broad indicators this is what he outlines :<\/p>\n\n\n\n<p>\u201c<em>I started the valuation at the basic valuation we tend to see in technology startups, which is $1\u20132m and go up to the eye-popping $12m (which is actually not the peak, just the highest end of normal).<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>When you have just an idea or mockup, you are likely to do a \u201cfriends and family\u201d round in the $1m range.&nbsp;<\/li><li>If you have an MVP or unpaid pilots, you might get some angels or seed funds involved&nbsp;$3-4mn range (VCs invest, on average, when you have $2\u20133m in revenue or even earlier as trend shows)<\/li><li>Paid pilots can take your valuation up to $6 &#8211; 8mn<\/li><li>Once Revenue streams are established you can look at a $12mn valuation.&nbsp;&#8230;&#8221;<\/li><\/ul>\n\n\n\n<p>Read the full article for better understanding of one of the most opaque processes in the Startup life cycle.&nbsp;And how being reasonable and getting smart money along side yourself can win the day.<\/p>\n\n\n\n<p>Link to the article: The Valuation vs. Traction\u00a0Matrix\u00a0<a href=\"https:\/\/medium.com\/@jason\/the-valuation-vs-traction-matrix-27049eb45fc\">https:\/\/medium.com\/@jason\/the-valuation-vs-traction-matrix-27049eb45fc<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you are planning to raise money from Angles of VC\u2019s you need to understand how your venture is likely to be valued. Basically it is a black box with broad strokes. How each parameter corresponds to value is still unknown as it varies widely from one investor to the other. Specially if you have [&hellip;]<\/p>\n<\/p><div class=\"more-link\"><a href=\"https:\/\/pitch.link\/blog\/how-green-is-my-valley\/\" class=\"btn btn-small btn--dark btn-hover-shadow\"><span class=\"text\">Continue Reading<\/span><i class=\"seoicon-right-arrow\"><\/i><\/a><\/div>","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"inline_featured_image":false,"ub_ctt_via":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[69,83],"tags":[70,81,128],"class_list":["post-2174","post","type-post","status-publish","format-standard","hentry","category-what-i-learnt-today","category-startup","tag-alwayslearning","tag-startups","tag-funding"],"aioseo_notices":[],"featured_image_src":null,"author_info":{"display_name":"Subhanjan Sarkar","author_link":"https:\/\/pitch.link\/blog\/author\/subhanjan\/"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paX7jg-z4","_links":{"self":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/posts\/2174"}],"collection":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/comments?post=2174"}],"version-history":[{"count":0,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/posts\/2174\/revisions"}],"wp:attachment":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/media?parent=2174"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/categories?post=2174"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/tags?post=2174"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}