Our annualised revenues are approx $2m USD, so we've already been given estimates by Accountants, legal expert who deals with M&A etc. that are extremely experienced in our field of what we could expect valuation to be. We want to be fair, but not give away more than we need to. Get there maybe a small discount. Possibly other proven angel investors we don't know so well they're keen introduce too (so how could we balance getting the most from this collectively?). How do you best arrive at this?!? (and should we consider e.g. convertible notes, something else as part of this). Thanks!

If you think the value over time is very high, don't spend time optimizing the valuation now. Use the credibility of these advisor/angels to build the story of why you are going to be able to take advatanage of this large opportunity and spend more time optimizing the round following them. They also know there is likely to be additional dilution in the future, so you want them to have a meaningful enough chuck of the business to stay motivated and helpful. This is all an arguement for keeping the valuation low now and increasing it post angel investment.

Answered 5 years ago

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