Priced to Impress
The process of determining how much a company is worth when deciding whether or not to invest.
What is a valuation?
The percentage of a company owned by a shareholder.
What is equity?
The very first stage of funding a startup, often from family and friends.
What is seed funding?
How much a company is worth before investment.
What is pre-money valuation?
The profit or loss that an investor expects from an investment, often in the form of a numeric multiplier.
What is expected return?
The term for when a company’s stock becomes available to the public.
What is an IPO (Initial Public Offering)?
How much a company is worth after investment.
What is a post-money valuation?
A plan for how investors will eventually sell their shares and get a return on their investment.
What is an exit strategy?
A startup's first significant round of venture capital financing.
What is Series A funding?
This strategy is commonly used to valuate a company.
What is looking at comparables?
This acronym is used to judge a company's financial health and ability to make money.
What is EBITDA (short for earnings before interest, taxes, depreciation and amortization)?
A round of funding where companies already have customers and revenue and are looking to grow quickly.
What is Series B funding?
This ratio is often used to valuate a company by looking at the company's earnings and the total market value.
What is a P/E (price to earnings) ratio?
The strategy of putting money into many different types of investments to stay safe.
What is diversification?
A round of funding where the startup is very established, often right before an IPO.
What is Series C funding?