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December 11, 2018

Series B and Later Stages Pre-Money Valuation - Norms

Rick Norland

Rick Norland
Owner/Thorington Corporation

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The pre-money valuations for Series B Stage and Later Stage companies begin to reflect the external factors in the economy and capital markets generally.  As well, these more mature companies have revenues and assets that facilitate the use of more classical valuation approaches.  Generally, pre-money valuations of the less mature Series B Stage companies will be based on some of the approaches described for Series A Stage companies.  The pre-money valuations of the more mature companies will use the methodologies described next.  It is a normal practice that investors in these companies will employ a number of valuation methodologies and look for the valuation “grouping” in determining the share price.  As well, most efforts will include a Comparable Transaction calculation.

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