Company Valuation Calculator based on an in-depth article from a16z, "When Entry Multiples Don’t Matter". It comes with a template and an explainer video. Simply add your financials and receive your valuation instantly.
Hey Hunters!
We are @yaroslavazhnyuk and Alyona, co-founders of Fuelfinance.
At Fuelfinance we make finance fun and sexy for all entrepreneurs💚
38% of startups die because of running out of cash. That is insane. Imagine we were throwing out 38% of food or any goods we produce. Fuel’s mission is to save companies from financial mistakes that should not have happened. If we succeed in that, we can not only save a good chunk of GDP, but for some people — save their life’s work and avoid a lot of personal drama.
And today, we are proud to launch a very useful tool for all founders - our unique and easy Company Valuation Calculator based on an a16z article. Imagine that you can get your startup valuation just in a second, and be much more prepared for your next fundraising 💸
The story of creating this template started when Yaroslav tried to find a way to make a company valuation based on both revenue and profit margins. And then he discovered a brilliant article by a16z “When Entry Multiples Don’t Matter”. Just read this short part of it:
"To determine possible exit values for later stage companies, tech growth investors often focus on two key and interconnected questions: (1) How long could this company grow at high rates; and (2) What will its margin structure be over time?
And in fact, the answers to these questions — runway for high growth and long-term margin structure — will be key factors in how companies are valued"
Firstly, we tested this idea on Petcube, Fuel’s customer. We started to check different what-if scenarios. And GSheet template made our calculations much faster and easier. As a result, the founders got an understanding of both valuation and multiples’ role in this valuation. Moreover, it was a clear snapshot of hardware and software revenue impact on a valuation📊 Finally, it was a good exercise for understanding target KPIs. Now, Petcube’s team uses this template during strategic sessions to choose projects with the highest impact on valuation.
This template can help you and your team also focus on what really matters while playing with your figures to get the desired valuation. And it’s absolutely FREE for all Product Hunt community.
Hope you will fall in love with the beautiful financial language after using our Calculator.
We will be happy to answer all your questions and be your virtual CFO today🤓
Please let us know what you think, and may the PROFIT be with you💰
@roberjet From my experience, it's better to get 10–20 calls with investors, show them your product, traction, and ask about the average valuation of other companies in their portfolios with the same metrics. From All-in podcast and information by David Sacks average Seed valuation was $8-15M 3-4 months ago.
@yurij_riphyak cool😍I like how it helps to understand key priorities for business. Especially during this financial downturn when startup financial efficiency is back in fashion =)
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