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MenuWhat is the average pre-money valuation of a enterprise/SaaS stat-up that is pre-revenue?
We currently have about $125,000 - $600,000 potential revenue. I say potential revenue because we have about $200,00 to $600,000 worth of customers testing the product, we were to close all of them it would be $600,000 in revenue.
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There is no valuation until you sell something. An idea or a company is only worth what its sales are. Once you have your initials sales, sales strategy and forecasting length (ie 9 months from first customer lead to close) then you have a formula for valuation. Valuation for start-ups is generally 3.5 x last years sales model should be the growth factor. When you are looking for investors, you will want to have atleast 9-18 months of SALES, not just pipeline and they will be looking at 5x revenue for a 3-5 year payback.
Generally, seed stage enterprise companies are raising between $4,000,000 - $6,000,000 pre-money depending on team, location and early traction.
Happy to speak to you to provide more specifics unique to your situation.
Accurate Pre-money valuation is not possible. It depends on a lot of factors for any enterprise. These factors are:
1. Geography
2. Supply and Demand
3. Industry
4. Exit Value
5. Cap-Table
6. Founders Incentive
7. Revenue Multiple
8. Investors Profiles
9. I.P.
10. Health of Economy
I can help you to calculate it though. Remember, the pre-money valuation of a company comes before it receives any funding. But this figure does give investors a picture of what the company would be valued at today. Calculating the pre-money valuation is not difficult. But it does require one extra step—and that is only after you figure out the post-money valuation. Here is how you do it:
1. Pre-money valuation = Post-money valuation - investment amount
Let us use the example from above to demonstrate the pre-money valuation. In this case, the pre-money valuation is $27 million. That is because we subtract the investment amount from the post-money valuation. Using the formula above we calculate it as:
2. $30 million - $3 million = $27 million
Knowing the pre-money valuation of a company makes it easier to determine its per-share value. To do this, you will need to do the following:
3. Per-share value = Pre-money valuation ÷ total number of outstanding shares
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
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