Ever wondered how much your company is worth?
In this episode of eLagaan Whiteboard Friday, the eLagaan team discusses how to valuate a company, when starting a startup, raising their venture fund, exiting the company. Some of the formulas to use are based on net profit or revenue.
But what happens when you have no revenue or running in a loss? What if the entrepreneur does not have a clear understanding of how much revenue the startup can have, how do you valuate a company then? It may be surprising to know that most of the time the valuation of a company can be dumbed down to a very simple calculation.
Watch the video from Pluggd.in TV: