for example: assuming that Xiao Ming spent three months to do a APP, angel investors red investment of 1 million, accounting for a stake of $ten percent, the project valuation of $10 million. After experiencing A round, B round of financing, the final valuation of one hundred million of the project, Xiao Ming accounted for fifty-four percent of the equity, investors accounted for a stake of forty-six percent. Then the problem, Xiao Ming fifty-four percent of the equity value and valuation than
again, if the project to the B round, red angels after several rounds of financing from ten percent to four percent, Alice through equity exit mechanism, with a four percent stake in exchange for a 4 million stake, why can the red capital relative to the exchange in accordance with the valuation ratio
can exchange for equity valuation and the corresponding problems aside, but the biggest problem is that the valuation of. General early or not at all in the valuation of financing, valuation of a number is VC and founder of boasting, entrepreneurs exaggerated valuation simply want to get more money, VC followed by exaggerated valuation but hope behind financing someone can take over, so that VC can through equity and project valuation relative to the geometric, in exchange for the exit of funds, VC profit model is through investment projects, and then find the disk access man exit.
general Internet project when the product has just come out, going to seed round of financing, valuation of up to 1 million in 100 thousand to 10 million in 2 million, an angel round, A round to 100 million in 10 million, the pre-A is in the angel to A wheel, the angel round but not qualified to A round, pre-A round the valuation of the project in 8 million to 20 million. (this is an investor told me, authenticity and specific figures also hope that God to judge
valuation is generally investors or investment analysts to assess, in accordance with the team, the project situation, etc.. Valuation bubble has emerged from a long time ago, driven by the valuation of the bubble is only two people, founders and investors.
technology media often release some pre project financing, how much, how much the valuation, these are the founders and investors collusion, through the media to attract the attention of investors investment later. The biggest problem is the valuation of the bubble number of financing and project situation, the general entrepreneur to get financing, generally speaking, the number of foreign financing is based on the original 3-5 times or so, which is still relatively conservative. The other is the project, a single brush brush brush list what data would not have said, in the venture capital circle has All the world knows..
assume that the amount of financing and project operations can be made public, then there will be no valuation bubble situation.
when a project is planned for the two or third round of financing, the founders and investors will be packaged for the project. For example: Xiao Ming accepted angel investors red angel investment, the intention to finance the A round, when the project valuation of 10 million, Xiao Ming will be through the packaging of the project, and