Valuation
Valuation writing for founders: pre-money, post-money, how investors set the number, and how to defend it.
22 articles
How to Value a Small Business When There Are No Comparables
Five practical valuation methods for small businesses: EBITDA multiple, revenue multiple, discounted cash flow, asset-based, and the buyer reality test. With worked examples and…
Quality of Earnings: What the QofE Report Reveals and How to Prepare for It
The QofE report is the single most important document in buyer due diligence. It either validates your EBITDA or destroys your valuation. Running a sell-side QofE first gives you…
SaaS Exit Multiples: What Drives Valuation for Recurring Revenue Businesses
ARR multiples vs EBITDA multiples. Rule of 40. NRR above 115% triggers premium multiples. Below $5M ARR, buyers revert to EBITDA valuation.
The EBITDA Bridge: How to Recast Your Financials and Add Millions to Your Valuation
Five EBITDA adjustment categories that translate reported income into true earning power. At 6x multiple, every $100K add-back creates $600K in enterprise value.
How Buyers Actually Price Private Companies: The Three Valuation Frameworks
EBITDA multiples, revenue multiples, and DCF analysis. When each applies, what drives multiples up and down, and the size premium effect.
SAFE vs Convertible Note: Dilution Comparison for Founders
Pre-money vs post-money SAFE mechanics, cap and discount benchmarks, convertible note terms, and the real dilution difference most first-time founders miss.
Startup Valuation: How to Estimate Your Company Worth by Stage
Revenue multiples by stage (seed 20-50x ARR, Series A 15-30x), Rule of 40, median pre-money valuations from Carta 2024, and how growth affects multiples.
SAFE Notes vs. Convertible Notes: Which One, When, and Why It Matters
A SAFE is not debt. A convertible note is debt that converts to equity. SAFEs have no maturity, no interest, and no repayment obligation.
SAFE Document Review: Key Terms Every Founder Should Negotiate
Master the critical SAFE terms that will shape your funding future: valuation caps, discounts, pro rata rights, and MFN clauses. Learn which terms are non-negotiable and where…
Uncapped SAFE Agreements: Risky Innovation or Fair Deal for Founders?
Uncapped SAFEs have no valuation cap, so investors convert at Series A price with no discount. We explain when they're founder-friendly vs. investor-aggressive and how they shift…
Post Money SAFE Mechanics and Founder Dilution Explained
Post-money SAFEs include the SAFE holder's investment in the company's post-money valuation, affecting how caps and dilution calculate. We explain the math and why post-money is…
What Is a SAFE and How It Differs from Convertible Notes
SAFEs (Simple Agreements for Future Equity) are simpler than convertible notes, with no interest or maturity dates. We compare the two instruments and explain when each makes…
Bridge Financing: When Convertible Notes Are Your Best Option
Bridge rounds using convertible notes help startups raise capital between seed and Series A. We explain when bridges make sense, terms to negotiate, and how they differ from…
Discount Rate Strategy for Convertible Notes: 10%, 20%, or 30%?
Discount rates give convertible note investors a percentage off the Series A price as reward for early funding. We break down market ranges, negotiation tactics, and how discount…
Valuation Cap Explained: Calculating Founder Dilution at Conversion
Valuation caps in convertible notes protect investors by setting a maximum company valuation at conversion, directly determining how much equity founders must surrender. We…
Convertible Note Terms Explained: Discount Rate and Valuation Cap
The two critical terms on a convertible note are discount rate and valuation cap. These determine how much equity the investor receives when converting. Understanding how these…
How to Negotiate Valuation Without Killing the Deal
Valuation negotiation is where most first-time founders either leave money on the table or blow up a deal by being unreasonable. The best valuation is not the highest number you…
The Exit Readiness Bible: The Complete Playbook From Preparation to Post-Close
The definitive guide to exiting your company. Covers valuation, the 24-month countdown, deal structure, tax planning, due diligence, and post-close wealth management. 34 chapters…
Startup Valuation Methods: Pre-Revenue to Growth Stage
Master startup valuation from pre-revenue stage through growth. Learn DCF, comparable company analysis, and venture capital methods to position your funding rounds effectively.
SAFE vs Convertible Note: Which Is Better for Your Startup?
SAFEs and convertible notes are both equity conversion instruments, but they differ fundamentally: SAFEs lack debt mechanics (no interest, no maturity date), while convertible…
How Convertible Notes Work: A Founder's Guide to Bridge Financing
Convertible notes are debt instruments that convert into equity at a future funding round. They're ideal for bridge financing because they defer valuation discussions, include…
Convertible Notes Are Not Free Money. Here Is What Founders Get Wrong.
A convertible note is a short-term loan that converts to equity at a future financing round. It is the most common pre-seed financing instrument, and it is also one of the most…