How Should You Value A Startup Without Revenue?

It’s a mystery to startup CEOs on how you should value a startup, let alone a startup with no revenue. Why is one startup with no revenue worth $1 million and another startup with no revenue worth over $100 million.

In today’s video I’ll explain startup valuation methods that you can try, how investors will value your startup, and the only surefire method to increasing the value of your startup. I hope you like it.

Say hi on social:

#brettfox, #startup, #venturecapital

YOUTUBE URL:

[wethepeopleofghana]

The moment you said if this content is resonating with you please like the like button now I did😊, and I rarely hit the button. I didn't because you didn't start by asking it, you did after you felt you have shared something valuable with your audience who are likely founders. That was brilliant!

[thrivemindpilipinas]

fund raising is hard. put yourself in the shoes of your investors.

[junglemandude]

I have subscribed and will be following you, just from finishing this great content... well done and keep educating us

[marinayatsuk]

ALL evaluation methods in comparison are valuable knowledge for inexperienced startupers 💯
Thank you for the video

[zeytelaloi]

Never thought about it this way, makes it much easier to reason about these things.

[SamirDamle]

Thanks Brett. I have learned a lot from you already from just 3 videos I watched. These are gems probably no one else shared so precisely. Please keep these tutorials for startups coming. 🙏

[chukwuemekannaji]

Thank you Brett. I'm amazed by how you remember the details of conversations you had decades ago. You are a great storyteller.

[jeffreymiller]

Great video. I just followed you on Twitter. This is what I tell my investors. I did a raise for just enough to have our working product. Meeting with big companies now. I took a little hit on the valuation at first but got 8 investors who are all entrepreneurs and CEOs themselves which bring extra advisory value.

[realarmani]

You're just so amazing with your points

[CaseStudyQB]

Great straight forward video. I’m saving this!

[holytie]

Been trying to write a business plan... Going tough. Thanks for sharing this. I hope to get more information about writing a business plan... Yea i hit the subscribe button!

[deepaksrivastava]

beautifully said and explained in a very simple

[Kuba]

Thank you again for sharing your knowledge!

If we have several potential investors, how to properly convey the information that they are not the only willing investors and "encourage" negotiations?

I guess we're not inviting everyone to the same negotiating table "who gives more" - or maybe I'm wrong?

Best regards!
Kuba

[marinayatsuk]

How can you evaluate, for example, a social network at the PreSeed, Seed, Round A:
1 - The founder should take as a basis the valuation of other social networks at the same rounds (What if these rounds were 10-20 years ago, now the operating costs are different) or the current valuation?
2 - Is it possible to evaluate a social network by comparing it with messengers, dating apps... - where the company’s evaluation depends on the number of active users

[uuczhky]

Brett, your insights were incredibly enlightening and made the concept of valuation much clearer for a company without revenue.

I do wonder, however, if it's essential to include a valuation in our deck for our initial round of funding, considering our revenue status.

[dboodtb]

I learned not to be precise about the cost of starting up a business to investors. Also be open ended about profit when asked because as years or the business stands, it might grow or decrease each year in profit.

[SandalinaEvi]

Very helpful indeed :) thank you Brett!

[mominakazim]

This has to be the best video explanation of pre-revenue valuation. One question: can we understand the rationale with examples for varying ownership targets across different rounds? Why 20% ownership (lower than before) at series A, but 10 percent at seed? Also, why are expected returns changing / fzllinc at later rounds?

[thetoolist]

Hey Brett, thanks for this really interesting content.
Simple, honest and straight to the point on subjects that are quite complex but crucial to understand.

[makatkplt]

I’ve got an Angel Investor but don’t know how to explain what his ROI should be.
Seems I’m at the start up point where I don’t know what I don’t know. This guy just believes in me