Funding

financial projections help startups build successful business

How do financial projections help startups build a successful business?

Financial planning, Funding / By

A prerequisite for every business is to maintain a sound business plan that includes meaningful financial projections. This is especially important for startup companies since their failure rate in the first year of operation is extremely high and #1 reason for failure is the startup ran out of cash. Financial projections help companies get insight …

How do financial projections help startups build a successful business? Read More »

The scorecard valuation method: a simple method for pre-revenue startups

Scorecard valuation method: How to value a startup with no revenues?

Funding / By

The scorecard valuation method is a popular, pre-money valuation method for early-stage startups. In this method, a startup is valued based on an adjusted benchmark value. The central idea is that a startup should be valued in line with comparable startups (similar in terms of geographical location, industry, market potential, and development stage). Next, the …

Scorecard valuation method: How to value a startup with no revenues? Read More »

Winning Startup Business Plan

Essential Components of a Winning Startup Business Plan

Financial planning, Funding, Risk management / By

Key reasons why you need a business plan for your startup 1. A roadmap to success To succeed in today’s competitive environment, you need a sound business plan and solid execution capabilities. A critical step is to develop a thorough understanding of your competitive environment and to identify the key drivers that will determine your …

Essential Components of a Winning Startup Business Plan Read More »

The Berkus method: A pre-revenue valuation method

The Berkus method: an elegantly simple model to value a pre-revenue start-up

2 Comments / Funding, Risk management / By

The Berkus method provides entrepreneurs and early-stage investors with a simple framework to value a pre-revenue startup by focusing on risk factors instead of financial projections. This method is useful for founders and early-stage investors (angels, early-stage venture capital, and crowdfunding backers). However, the model’s simplicity does not replace the need to perform comprehensive due …

The Berkus method: an elegantly simple model to value a pre-revenue start-up Read More »