Seeking NYS Companies Only
Eastern NY Angels is seeking entrepreneurs who are interested in obtaining early stage funding for their company. Please review the criteria described in the investor process.
Entrepreneurs, click here to submit or update your business plan.
Ultimately the valuation of a company will be a negotiated amount between the company and the investors. Having said that, there are some basics that drive the determination of a company's valuation. Company stage of development, product stage of development, key team members, existing and forecasted revenues, intellectual property position and existing distribution agreements are among some (but not all) of the driving forces in making a valuation of the company. Similar company valuations currently in the market (comparables or "comps") can also help with determining a company valuation.
Companies without much (or any) revenues but with a great promise for future revenues growth add to the uncertainty of a valuation, giving more focus on the assumptions going into those revenues forecasts and the risk factors in achieving the targets.
A presenting company to Eastern NY Angels should have an idea of what their company valuation currently is (pre-money before any investments are made.) A company CEO needs to have thought through this question before being asked by a potential investment group.