Pre-money Valuations

Posted Leave a commentPosted in Investing

So I’ve just been offered an investment in a company. The company has been valued at a pre-money figure. Pre-money valuations are a less than reputable tactic used in the VC industry to increase the value of a company and it works like this. Your company is worth £1M, and you want to raise £500K, […]

3 Ways to value a company

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In an earlier blog I described the traditional way to value a company. Paul Graham of Y Combinator, attempts to value a company based on “equity vs. investor added value” using mathematical equations, essentially an ROI model: There is a third model which is often unspoken, and the only true measure: Your company is worth what […]

Structure of a Business Plan

Posted 1 CommentPosted in Investing, Mentoring

I got another business plan today that fails to describe what the product does and how it works. It also spends a significant amount of time giving client testimonials and potential market without explaining what investment is required, what its going to be used for. A ROI estimate would have been useful as well. So […]

Should money go up in smoke?

Posted Leave a commentPosted in Investing

So another funding dilemma I have been grappling with recently. Whether to invest in companies that are growing, successful but losing money? My answer is always NO, partly because I’m canny but also because I don’t have infinite money to burn. However the U.S. is especially adept at investing in loss making businesses. Amazon is […]

Learn from losers

Posted Leave a commentPosted in Mentoring

I’m currently about halfway through Eric Schmidt’s book: How Google Works, and I’m not really getting that much from it. It reads a little parochial and tame, while the advice it offers is unrealistic. Most companies and CEO’s have a much broader job with many more challenges and a lot harder mountain to climb. Now […]