No ad to show here.

How to value your startup? This podcast by StartUp tells you all about it

The five-year-old ride-sharing app, Uber, is valued at US$40-billion while the three-year-old photo messaging app, SnapChat, is worth an estimated US$10-billion. The latter only recently started introducing some revenue-making features and was worth billions to Facebook last year. How do startups determine their value? Especially when they don’t have a regular income.

No ad to show here.

In this insightful podcast, simply called StartUp, renowned radio journalist Alex Blumberg and business partner Matt Leiber share their first-hand experiences on how to value a startup.

Each episode of the “podcast startup documenting the launch of a startup” Gimlet Media takes listeners through the company’s growth pains and gains. In this sixth edition, Blumberg and Leiber receive interest from investors while others question the company’s valuation.

The Inception-like StartUp podcast is really worth your 30 minutes if your interested in getting insightful lessons about building a company and learning about the exciting ecosystem:

While coming up with an accurate valuation for existing companies is rather simple (comparing expenditure and revenue), a developing company such as Gimlet Media is quite a different story. Blumberg points out that it boils down to a startup’s valuation cap, which is quite a big deal: “If I invest a US$100 000 — and the company I’m investing in is valued at US$200 000 — I’ve just bought myself half the company.” On the other hand, “If the company is valued at US$1-million, then my US$100 000 buys me far less — 0.1% of the company.”

Another important point Blumberg makes is that the valuation of your startup ultimately tells a bullish story to investors. “A US$10-million evaluation says that [our startup] is going to grow quickly, and that in a year or two when we have actual listeners, actual math and actual revenue, we’ll be worth twice as much.”

No ad to show here.

More

News

Sign up to our newsletter to get the latest in digital insights. sign up

Welcome to Ventureburn

Sign up to our newsletter to get the latest in digital insights.

Exit mobile version