Scott Technology Center Ken Moreano Executive Director Financing Entrepreneurship in Today’s Environment
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Scott Technology Center
Ken Moreano
Executive Director
Financing Entrepreneurship in Today’s Environment
FUNDING
Sourceso Founder, Family, & Friendso Angelso Fund/Syndicationo VCo Not for Profitso Co-Working Incubatoro “Jump Start” / “Tryout”
TODAY’S ENVIRONMENT
Strategic: Pain Points
Matching: Partner Matching
Leverage: Syndication
Infrastructure: Subsidy
VALUATION CONSIDERATIONS
A valuation considers many factors:o Milestones o Industry o Economic climateo Management & Board of Directorso Market and competitorso Barriers to entryo Proprietary technologyo Strategic relationshipso Cost structure and financial face
VALUATION
Start-Ups (What we are seeing)o $300k-$500k (some at $1M-$3M)o Company worth $1Mo Raise of $500k o Post-money value is $1.5Mo $500k investment provides 33%
ownership
VALUATION
Silicon Alley Insider: Valuation Indexo SAI 25 LIVE! – Guess work based on VC
financing, financial performance, growth rate and market share & size.Facebook valued at $15B after MSFT investment of $240M. Index currently @ $9B
o Various Methodso Very subjective at Start-Up & Early Stage
RATE OF RETURN
Start-Up35-50%
Later Stage25-35%
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