Investors and entrepreneurs often ask me to shed some light on how to value pre-revenue companies – an issue often raised when entrepreneurs are looking for external investment.
Teaching courses on entrepreneurship and innovation, which include raising finance, suggests that I have a level of expertise in this area, which enables me to provide a definitive answer. Unfortunately, the opposite is true. The more I teach this issue and research different valuation techniques, the more I recognize that valuation of pre-revenue companies is more of an art than of science.
To read the full, original article click on this link: How much is your business worth? « The RIC Blog
Author: Andrew Maxwell
