There are three variable that drive the financial return for Angel investors (and founders): Pre-Money Valuation. Subsequent Dilution. Exit Amount. Instinctively founders seek as high a valuation as possible. It must be a ‘good thing’ to ‘give away’ as little equity as possible. Typically, founders will seek to find comparatives to justify their valuation proposals.…
I was asked recently to provide some feedback on possible valuation benchmarks for a company raising its first external equity funding. Of course the funder has been looking at valuations from Silicon Valley. Largely one suspects because they are larger than the local ones in Latvia. The use of comparatives is a sensible way to…
As an Investor your financial returns will be driven by the following factors: Initial Valuation (% of company you own) Subsequent dilution (factor of both future funding amounts and the structure of future deals – do new investors have a preference return ranking ahead of yours?) Time to Exit Exit Value Most founders / investors…
Nelson has been a Business Angel investor for over 20 years and is recognized internationally as a thought leader and public speaker.
Nelson’s extensive experience allows him to blend a practical application of investment and company growth with an understanding of public policy at an international level.