𝗙𝗿𝗲𝗲 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗦𝘁𝗮𝗿𝘁𝘂𝗽 𝗚𝘂𝗶𝗱𝗲𝘀: How to Value a Startup article: startupsavant.com/startup-center/how-to-value-a-startup Ways to Boost Your Startup Valuation! startupsavant.com/ways-to-boost-startup-valuation 𝗦𝘁𝗮𝗿𝘁𝘂𝗽 𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁𝘀 𝗮𝗻𝗱 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀: 💸 We brokered some exclusive deals from webhosts, professional services, and everything else you might need to get your idea off the ground. Get em while they’re hot: startupsavant.com/startup-center/deals 🧠 Looking for actionable steps to start your own startup? Check out our detailed guide: startupsavant.com/how-to-start-a-startup
No investors are willing to invest small risk 10% ROI. Most investors love high risk, high reward, especially unicorn, we all know unicorn exist IRL and they never get extinct.
Very underrated video. First time I've come across this channel and you deserve more subscribers for the quality of content I just saw. I just subscribed and I hope more people do so. As a co founder of a startup that hopes to have our app on the appstore soon, I'm always on the lookout for really good channels that operate in our space. Thank you.
This is why numerous major institutional investors are increasingly gravitating towards tangible assets like multi-family real estate. They offer no-frills, reliable income streams and realistic property valuations.
This channel is producing quality content from a year and why they are not gaining more views? They have shown that they have only 1.8 million unique visitors. I am worried 😟
@@StartupSavantTRUiC I wish too. But your content seems soft to me. Maybe you can stop that. Soft means I do not get more motivation to watch YT short.
@@radsmir2218 we need to discourage this tendency, dont u think. shorts are not really gonna help us develop our understanding. they are more ike clickbaits. we need society of calm and patientful, SINCERE people, not who want to change everything in 10 seconds.
Can you make when I should raise a fund, per seed round how much i want to execute the plan is there any metrics to analyze? Please make a video that will be helpful.
Vanity Metrics are stupid. Just because you have those users now doesn't mean you'll have those users when you start charging more money or worse, go from free to paid subscription.
This is the problem with the modern day business model. Release a service/product at an unsustainable rate to generate a user base, then actively “nerf” the value or make the product worse overall because you need to make money in the end. Uber and Spotify come to mind as prime examples of this and I’m sure there are many others. It’s actually sad to see a service become worse for the end consumer because the initial business model was overhyped and now exec are scrambling to make a profit.
I got a startup, it can be an AirBnB rival but better. Currently the MVP is up and running. I'm seeking funding as another typical US startup and wouldn't mind relocating the startup. I'm not a US citizen though. What do you think is best I should do?
International startups should start by identifying their target market within the US. Different regions attract different types of startups, and investors for your type of startup are likely to be located in those regions. Once you have identified a potential investor, you may need to relocate to that area. We recommend working with a service like Systematic Ventures, which can help you find the right investors for your startup: www.systematicventures.com/truic.
Why do companies need to sustain growth? It doesn't make sense. Growth cannot be infinite. And simply because something stops growing, doesn't mean it's useless or worthless. Take FARMING for instance. People are retired.
It depends on the angle from which you see it. A company in itself does not need growth per se. In theory, it can maintain itself without growing and create value at the same time. But in the capitalism in which we live, it needs growth. Why is that? The competition is there. And if you don't grow, someone else will and you will cease to exist. And the main driver of growth is innovation. This innovation in turn needs money. In order for a bank or investor to lend you money, they want interest or some of your profits. In other words, as a company, you have to make more profits than you have so far in order to get any money at all. And that's the whole (vicious) circle.
I would watch the entire video just to hear the sound of this voice, it’s calming and kinda cute baby voices out there. Tate McRae etc. It’s soothing 😌
Literally I have said many times in the past, I didnt wanted to raise money at idea stage, and once I got revenue and customer validation, I would raise funding that too seed or series A. Later do debt funding as my focus from day 1 is to make company profitable not revenue burning. I said many times in twitter I don’t like revenue burning startups like byjus etc. I even have plan on debt fundings as I would buy back my equity from seed investors in future and don’t want more investors in fact.
now i see it, but when i saw the title in thumbnail and it was the actual thing i wanted to know. so pic doesnt matter. so channels like these dont need to make fancy graphics and spend money on thmbnails, just mention the CRUX OF THE TOPIC and one who actually wants to watch, would watch. like just i did. and i subscribed too.
I don't agree with definitions. I would suggest the following: Value is an average estimation by the market at a time. It's just how much a thing costs now. Valuation is a prediction if what others will predict what others will predict. The investor doesn't care in fact about his assessment of the project. He needs others to assess it high to make profit himself. And others will use the same strat: they will try to predict if others assess it higher. So to Invest at a certain price, the investor must be sure that other investors will believe that other invesors will assess it higher.
1:24 actually there's a a huge difference between earnings and revenue 🤓, I know it's just used for grasping purposes (I hope it is), I'm a finance guy and for me you've just butchered my career 🤓
Exact never raise too much funding without customer validation and don’t do crazy cash burning for revenue , some founders burn all money on marketing to make pseudo revenues. Cash burning startups later hand their bad business to retail investors in stock market, they never work on core issues
He’s our player .. it’s not a case of him turning his back surely … it’s up to us if we want him to stay this season … where is football headed if all players need to do is say their “head has been turned” .. do they just go on strike
Love the rest of the video, but you couldn't be more wrong about the definition of "value" at 1:05! You have defined "price" there, not "value". The actual definition of "value" is just as far from what you have defined, as is your definition of "valuation" from "value". Your definition of "value" fits the definition of "price", and your definition of "valuation" fits the actual definition of "value". You basically described "price vs value" instead of "value vs valuation". This may seem like a small error, but it isn't, considering your ENTIRE video is literally about value vs valuation. Please check these things before publishing videos. This is a fundamental mistake
Agree - "valuation" is simply the action of, or result of, establishing something's value. I hate when people try to create some arbitrary distinction between words that literally mean the same thing.
Good video, some good points. However I think it’s VERY dodgy of you to say that FTX lost its billions of $ valuation because ‘investors stopped giving into the hype’ just to prove your point. FTX lost its valuation because of FRAUD and the top people in the company gambling user funds without consent.
They have far too much money to care about profits. The time to do good things for people and the world. Life to short...who knows you will alive tomorrow...you cant take a penny with you.
I could look past the value vs valuations definitions, but using revenue and earnings interchangeably drained all credibility. Using those two terms interchangeably is almost as glaring as using the colours black and white as the same word. If you’re gonna speak authoritatively on a topic, gotta get the terminology right. And if you make a glaring, fundamental error, fix it instead of leaving it up for months / years, perpetuating and expanding confusion for those who watch. Financial literacy matters.
Нет никакой корреляции и причинно-следственной связи между неограниченным печатанием ничем не обеспеченных доллоров и ростом ванити метрик при оценке стартапов. И конечно же никакой корреляции причинно-следственной связи с ростом инвестиционных капиталов тоже нету
Valuation is blue sky! Or to be more direct and realistic when its your money it is worth maybe 1x's. When its money from wall street then it goes 100 to 1000 x over. Why who care you don't have a dog in this fight so if it goes to zero big deal its not your money! This BS will not last much longer.
Tesla and Elon has to be the most lucky company and individual to exist. No other company would survive in Tesla place and that’s all thanks to cult like following. What amazes me is they did this without advertising or big investors in the beginning. Their cult following was their biggest investors aka we the people 😂 look at other ev brands like rivian they got the biggest supporters like ford and amazon yet they surviving on the edge.
What bullshit. VC and Institutional investors know what they are doing, they are the ones that told founders to not be profitable but be revenue rocket. WHY? Coz the faster the company become famous and big in revenue, the faster they will be able to sell their shares in successive rounds. Serie D or E investor plays much bigger game in stock market, as they have power over govt. due political funding to look the other way. BUT HEY, Big investors are the only ones that made all the big companies possible, created millions of jobs. So if goverment can't do it upfront, they say why not us?
You can't explain it. It's something that they made it in the 2000s where it's banking scheme. It has something to do even with Allen Greenspan adding it GDP. They're applying the crap where a bank only has to hold 1/10th of the money it lends out to the illusory computer data. It's because their business don't have physical things like a car company does, or a factory would in a the past. It's more like a bank. They came up with a scheme where they're applying banking type accounting to something that is defined as a business like a real business but isn't.
𝗙𝗿𝗲𝗲 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗦𝘁𝗮𝗿𝘁𝘂𝗽 𝗚𝘂𝗶𝗱𝗲𝘀:
How to Value a Startup article:
startupsavant.com/startup-center/how-to-value-a-startup
Ways to Boost Your Startup Valuation!
startupsavant.com/ways-to-boost-startup-valuation
𝗦𝘁𝗮𝗿𝘁𝘂𝗽 𝗗𝗶𝘀𝗰𝗼𝘂𝗻𝘁𝘀 𝗮𝗻𝗱 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀:
💸 We brokered some exclusive deals from webhosts, professional services, and everything else you might need to get your idea off the ground. Get em while they’re hot:
startupsavant.com/startup-center/deals
🧠 Looking for actionable steps to start your own startup? Check out our detailed guide:
startupsavant.com/how-to-start-a-startup
No investors are willing to invest small risk 10% ROI.
Most investors love high risk, high reward, especially unicorn, we all know unicorn exist IRL and they never get extinct.
Investments are the roots of financial security; the deeper they grow, the stronger your future will be."
The deeper your investment roots, the stronger your financial security will be in the future.
Exactly! With my adviser, I’ve cultivated deep investment roots, strengthening my financial security for the future.
I would love an introduction to an adviser who can help me strengthen my financial roots.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.
Thank you for this amazing tip. I just looked the name up and wrote her.
Very underrated video. First time I've come across this channel and you deserve more subscribers for the quality of content I just saw. I just subscribed and I hope more people do so. As a co founder of a startup that hopes to have our app on the appstore soon, I'm always on the lookout for really good channels that operate in our space. Thank you.
Much appreciated!
Hey bro can we connect?
grow organically
Amazing video! Loved the simplicity by which such complex topics were covered. Already a subscriber after first watch.
The video is great but I almost didn't want to watch it because of the cringey thumbnail
SAME
I agree
2
I loved the thumbnail. Very funny.
Same
P/E ratio is not Price to Revenue but Price to Earnings or Profits, not revenue because expenses and deductions is not calculated in Revenue.
It's useless papers 😔 👎😂😭😭😭😭
She is confused with revenue and earnings
Exactly, stopped watching after this was repeated 2 times
@@sanjar434 who's in Spain!?!
@@sanjar434 good at video editing though
Wow. What a great video. The narration and animations are really class.
This is why numerous major institutional investors are increasingly gravitating towards tangible assets like multi-family real estate. They offer no-frills, reliable income streams and realistic property valuations.
This channel is producing quality content from a year and why they are not gaining more views? They have shown that they have only 1.8 million unique visitors. I am worried 😟
2023 is our year! Thanks for watching us! 💓
@@StartupSavantTRUiC I wish too. But your content seems soft to me. Maybe you can stop that. Soft means I do not get more motivation to watch YT short.
@@radsmir2218 we need to discourage this tendency, dont u think. shorts are not really gonna help us develop our understanding. they are more ike clickbaits.
we need society of calm and patientful, SINCERE people, not who want to change everything in 10 seconds.
every 10 seconds
Watched the video. Then looked at the subs and views. Never expected such great quality from such a small channel! Subbed.
Loved this! Thank you so much for creating this video
Glad you enjoyed it!
Thanks so much for sharing this. Simple and easy to understand.
Super clean explanation 👏. Looking for more videos
Great video thank you 🙏🏻
Am impressed by the amount of work that went into this video. Am subscribing for certain!
Thanks for watching!
Amazing channel. Glad I came across it🔥🔥🔥🔥
Companies are like ‘art works’~ they’re valued what people are willing to pay for, and every quarter they report earnings.
Underrated channel
After watching this video.. i just subscribed
😂😂😂😂😂😂 sign me in that's why I love china
Can you make when I should raise a fund, per seed round how much i want to execute the plan is there any metrics to analyze? Please make a video that will be helpful.
Loved every second of this
I thought this is a succinct very insightful video on the past present and future outlook that investors asses a company’s value.
Is there not an inaccuracy when you say Revenue * P/E ratio? Earnings imply Net Income, and the typical metric would be Revenue * EV/Revenue Multiple.
Thanks for sharing
When a P/E ratio is based on EBITDA, and the E stands for Earnings, does that mean revenue or net profit?
Vanity Metrics are stupid. Just because you have those users now doesn't mean you'll have those users when you start charging more money or worse, go from free to paid subscription.
This is the problem with the modern day business model. Release a service/product at an unsustainable rate to generate a user base, then actively “nerf” the value or make the product worse overall because you need to make money in the end. Uber and Spotify come to mind as prime examples of this and I’m sure there are many others. It’s actually sad to see a service become worse for the end consumer because the initial business model was overhyped and now exec are scrambling to make a profit.
Except evening free sucks.
Just a correction price to earnings ratio is earnings multiplied by a constant/standard rate.
I got a startup, it can be an AirBnB rival but better. Currently the MVP is up and running. I'm seeking funding as another typical US startup and wouldn't mind relocating the startup. I'm not a US citizen though. What do you think is best I should do?
International startups should start by identifying their target market within the US. Different regions attract different types of startups, and investors for your type of startup are likely to be located in those regions.
Once you have identified a potential investor, you may need to relocate to that area.
We recommend working with a service like Systematic Ventures, which can help you find the right investors for your startup: www.systematicventures.com/truic.
Why do companies need to sustain growth? It doesn't make sense. Growth cannot be infinite. And simply because something stops growing, doesn't mean it's useless or worthless. Take FARMING for instance. People are retired.
It depends on the angle from which you see it. A company in itself does not need growth per se. In theory, it can maintain itself without growing and create value at the same time. But in the capitalism in which we live, it needs growth.
Why is that?
The competition is there. And if you don't grow, someone else will and you will cease to exist. And the main driver of growth is innovation. This innovation in turn needs money. In order for a bank or investor to lend you money, they want interest or some of your profits. In other words, as a company, you have to make more profits than you have so far in order to get any money at all. And that's the whole (vicious) circle.
Brilliant video
Awesome video
Great channel! Make more
Great explanation thank you ❤
Hey, I'm gonna watch it in some time.
I would watch the entire video just to hear the sound of this voice, it’s calming and kinda cute baby voices out there. Tate McRae etc. It’s soothing 😌
3:10 Uber isn't free so I don't know why hotel analogy applies here.
Literally I have said many times in the past, I didnt wanted to raise money at idea stage, and once I got revenue and customer validation, I would raise funding that too seed or series A. Later do debt funding as my focus from day 1 is to make company profitable not revenue burning. I said many times in twitter I don’t like revenue burning startups like byjus etc. I even have plan on debt fundings as I would buy back my equity from seed investors in future and don’t want more investors in fact.
Good video 🇺🇸📈
you got one thing wrong meta doesnt belong here, its mention under this video title is not correct, its a cash cow.
But dont investors also hope they IPO and they make their profit there?
Why is valuation paper has native on it😮
😂😭😭😂😂😂😂😂😂😂
what is up with the thumbnail💀💀
now i see it, but when i saw the title in thumbnail and it was the actual thing i wanted to know. so pic doesnt matter.
so channels like these dont need to make fancy graphics and spend money on thmbnails, just mention the CRUX OF THE TOPIC and one who actually wants to watch, would watch.
like just i did. and i subscribed too.
I don't agree with definitions. I would suggest the following:
Value is an average estimation by the market at a time. It's just how much a thing costs now.
Valuation is a prediction if what others will predict what others will predict.
The investor doesn't care in fact about his assessment of the project. He needs others to assess it high to make profit himself. And others will use the same strat: they will try to predict if others assess it higher. So to Invest at a certain price, the investor must be sure that other investors will believe that other invesors will assess it higher.
5:12 what a terrible reasoning for FTX. The stock cratered because they went insolvent
1:24 actually there's a a huge difference between earnings and revenue 🤓, I know it's just used for grasping purposes (I hope it is), I'm a finance guy and for me you've just butchered my career 🤓
This video is kinda cringe and mostly wrong
Interest rates? Investors are more willing to take risks when money is free.
Exact never raise too much funding without customer validation and don’t do crazy cash burning for revenue , some founders burn all money on marketing to make pseudo revenues. Cash burning startups later hand their bad business to retail investors in stock market, they never work on core issues
😂😂😂😂 random customer can buy these companies if they stop being sensitive 😭
Well, tbf META is actually very profitable
i see it this making a profit on the books isnt important as you think when the user itself is the money.
He’s our player .. it’s not a case of him turning his back surely … it’s up to us if we want him to stay this season … where is football headed if all players need to do is say their “head has been turned” .. do they just go on strike
These Over Valuations are Illegal, That is What The Company Enron Did.
Love the rest of the video, but you couldn't be more wrong about the definition of "value" at 1:05! You have defined "price" there, not "value". The actual definition of "value" is just as far from what you have defined, as is your definition of "valuation" from "value".
Your definition of "value" fits the definition of "price", and your definition of "valuation" fits the actual definition of "value". You basically described "price vs value" instead of "value vs valuation".
This may seem like a small error, but it isn't, considering your ENTIRE video is literally about value vs valuation. Please check these things before publishing videos. This is a fundamental mistake
Agree - "valuation" is simply the action of, or result of, establishing something's value. I hate when people try to create some arbitrary distinction between words that literally mean the same thing.
@@2bfrank657 Exactly! Thank you for saying that!
why the fuck does this video have moonlight sonata in the background audio. wth!
Bro your AI time stamp of the video is scary af
That is why I hate this culture even though I'm a techy. Traditional business owners have my hige respect
Good video, some good points. However I think it’s VERY dodgy of you to say that FTX lost its billions of $ valuation because ‘investors stopped giving into the hype’ just to prove your point.
FTX lost its valuation because of FRAUD and the top people in the company gambling user funds without consent.
They have far too much money to care about profits.
The time to do good things for people and the world.
Life to short...who knows you will alive tomorrow...you cant take a penny with you.
You lost me when you said revenue x standard rate is Price to earning ratio
hehe you lost me after the dollar example went straight to jargon.
I could look past the value vs valuations definitions, but using revenue and earnings interchangeably drained all credibility.
Using those two terms interchangeably is almost as glaring as using the colours black and white as the same word.
If you’re gonna speak authoritatively on a topic, gotta get the terminology right.
And if you make a glaring, fundamental error, fix it instead of leaving it up for months / years, perpetuating and expanding confusion for those who watch.
Financial literacy matters.
Нет никакой корреляции и причинно-следственной связи между неограниченным печатанием ничем не обеспеченных доллоров и ростом ванити метрик при оценке стартапов. И конечно же никакой корреляции причинно-следственной связи с ростом инвестиционных капиталов тоже нету
My startup valuation starts with a B... a buck!
#TXTM Tribe
FTX was right out scam on face do some research
That thumbnail needs change
Valuation is blue sky! Or to be more direct and realistic when its your money it is worth maybe 1x's. When its money from wall street then it goes 100 to 1000 x over. Why who care you don't have a dog in this fight so if it goes to zero big deal its not your money! This BS will not last much longer.
OKO
Tesla and Elon has to be the most lucky company and individual to exist. No other company would survive in Tesla place and that’s all thanks to cult like following. What amazes me is they did this without advertising or big investors in the beginning. Their cult following was their biggest investors aka we the people 😂 look at other ev brands like rivian they got the biggest supporters like ford and amazon yet they surviving on the edge.
Great video, terrible thumbnail
Thanks for the feedback!
You sound like Meg
Money printer go BRRRRR.... more money doesn't mean more value... just asset inflation.
😂
If you showed your face like Patrick Boyle, you would be unstoppable.
What bullshit.
VC and Institutional investors know what they are doing, they are the ones that told founders to not be profitable but be revenue rocket. WHY?
Coz the faster the company become famous and big in revenue, the faster they will be able to sell their shares in successive rounds.
Serie D or E investor plays much bigger game in stock market, as they have power over govt. due political funding to look the other way.
BUT HEY, Big investors are the only ones that made all the big companies possible, created millions of jobs. So if goverment can't do it upfront, they say why not us?
And what are you worth in comparison? lol
aaaaa
Very poor explanation of value
You can't explain it. It's something that they made it in the 2000s where it's banking scheme. It has something to do even with Allen Greenspan adding it GDP. They're applying the crap where a bank only has to hold 1/10th of the money it lends out to the illusory computer data. It's because their business don't have physical things like a car company does, or a factory would in a the past. It's more like a bank. They came up with a scheme where they're applying banking type accounting to something that is defined as a business like a real business but isn't.