Businesses are valued as a function of their cash flow. In a contract service business, the cash flow can be tied to the contracts that are in place. Here is the problem, if the contracts don't go very far into the future, then you won't get a very high multiple of cash flow as a business valuati...
(built Spheric / 30+ person consultancy / sold in 4 years) I'm going to assume you're thinking of starting a service company vs. a product company (even though most service companies do have ambitions of some day having a product, it's best to stay focused on this for now - they are totally diff...
Ugh. Investors. Here's the harsh or maybe happy truth. If your Startup offering (product, service, information, courseware, consulting, etc) provides stellar value, then you require no investment. Do your launch + if money starts pouring in, either skip the investors of if you really must use ...
A convertible note is a possible route. It would provide the owner with a discount to the price set at your next round of funding. For example, assume you give the note holder a 50% discount on your next round. Then your Seed Round sets the price at $10 per share/unit, the note owner would be abl...
Basically you're extrapolating future sales that you expect will come from these 50,000 customers. So it's really a question of assumptions + existing data. Knowing the average sale amount of $120 is nice, but it's really inadequate. How saturated are those customers in terms of ongoing purcha...