New Venture Value

In his 8/8/08 BusinessWeek article Putting a Value on a New Venture:  How to perform a back-of-the-envelope valuation of a business that’s still relatively unproven,Tom Taulli writes:

"Sure, there are generally accepted ways to determine what an established private company is worth (BusinessWeek SmallBiz, 4/16/08). But for a relatively unproven venture, the process is really more art than science (some may even think it’s magic or voodoo, or just plain craziness)."

When I shared insights I gained from creating a business plan for my new VT KnowledgeWorks company, I wrote, "Predicting revenues reminded me of frosting a fallen cake. One fills in the gap with icing, knowing it will still taste good, and hopes no one notices."

Taulli offers a link-rich, "premoney" and "post-money," comprehensive article on valuing a start-up company.  His ways offer more weight than either magic or voodoo. 

Probably not more weight than my icing.

I plan to learn new business recipes at Concept Camp.

The writer of this blog, Anne Giles Clelland, is a new member company of VT KnowledgeWorks.  She will be attending Concept Camp September 17-19, 2008.  Will you come with her?

Concept Camp is sponsored by Hodges, Jones & Mabry, P.C., a financial and accounting services firm.  For more information on Concept Camp, contact VT KnowledgeWorks Member Services Manager Lindsey Eversole, [email protected].

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