
Advice for entrepreneurs seeking investment: Pull your company's pants down - peter123
http://asack.typepad.com/a_sack_of_seattle/2009/02/advice-for-entrepreneurs-seeking-investment-pull-your-companys-pants-down.html
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ericwaller
_They have a company with 6 employees, that generates about 20K per month in
revenue and are trying to raise 500K at $3,000,000 pre-money. I thought they
were dreaming and told them so._

Is the valuation just too high? I've heard 3-5x revenue quoted as a good
starting point for figuring out a valuation during an acquisition, but I'm
assuming this is an early stage start up which expects to grow this revenue
number quite a bit.

