Overview

Start-up valuation is a critical aspect of venture capital investing. It helps determine the worth of a company and the potential return on investment. This section covers essential valuation concepts, focusing on venture math and cap table considerations. You should learn key valuation formulas, calculations, and how to avoid common cap table issues that can impact both founders and investors.

Objectives

By the end of this section, you should:

• Understand the basics of start-up valuation and how it impacts investment decisions.
• Perform calculations related to pre-money and post-money valuations, dilution, and ownership percentages.
• Identify common cap table pitfalls that affect ownership and control.
• Analyse real-world examples and case studies to see valuation principles in action.