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home page > Entrepreneurial necessity > How to evaluate the valuation of start-ups and the equity ratio of investors?

How to evaluate the valuation of startups and the proportion of investors' equity?

Source: News Author: Qi Erge Time: 2020-01-09 18:24 Views: 5209

The valuation of start-ups seriously affects the process of financing. Next Second Brother Let's introduce the company valuation and the proportion of investors to entrepreneurs who need financing.

 Startups

The value of traditional enterprises invested by angel investors is generally 2-5 million If the entrepreneur's valuation of the enterprise is less than 2 million yuan, then either he or she is not experienced enough, or the enterprise does not have much development prospects. If it is the latter, it is estimated that it is difficult to obtain funds. However, their evaluation methods for Internet enterprises are different from the traditional methods. Considering that the value of Internet enterprises fluctuates greatly, that is, the scope of enterprise value evaluation in the start-up period has increased from the traditional 2-5 million yuan to 2-10 million yuan. Now many angels raise the upper limit to 20 million yuan.

Then there is the issue of the proportion of investors' equity, which cannot exceed 50% in any case, because it may cause the founder to lose the motivation to work hard. Similarly, it cannot be 40%, because there is little room for investors in the next round. If you get a large amount of seed money, 30% will be reasonable. However, the proportion of equity should also be allocated according to the proportion of investors' amount and the company's valuation, generally accounting for 5-20% of equity.

Many entrepreneurs hope to get a relatively high valuation in Angel Wheel. Actually, it is not certain. When you get a high valuation in the seed round, you need a higher valuation in the next round. This means that you need to grow a lot between rounds. Therefore, the valuation is not the higher the better, but reasonable.

More industrial and commercial issues of the company can be found on the second brother's website.


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