Q: How does an early-stage investor value a startup? Answer: Read below

Carlos Eduardo is a rare breed in Europe: That is, he’s a venture capitalist that doesn’t suck.

The overwhelming majority of VCs in Europe are utter idiots. I say this a) from direct experience and b) from inherited experience (on the boards or advising startups who had the stupid, stupid idea of dealing with a clueless EU-based VC).

Most VCs will happily take you for lunch, smile at you regularly, then after 6-months of screwing about, tell you it might be better for you to borrow some money from a bank 😉

Far from sucking, Carlos is well known across the community as a chap who’s got his head on properly and, further, someone who won’t waste your time.

He’s got a lot of experience at some bigger firms in the industry — and now he’s doing seed investments as a Partner at the much lauded Seedcamp, probably about the only decent thing happening in the European investment community at the moment.

Carlos has answered the question that many executives thinking about starting a company pose to me regularly: How does an early-stage investor value a startup? He’s provided a nuanced break-down of the various factors that usually apply — so if you’re thinking of getting stuck into a startup or if you’re on the mind-numbing European-startup-circuit wondering why the majority of investors you’re meeting are absolute tools, you will get a lot of value from the post (and, by the way, the rest of the output on Carlos’ site).

Have a read… Nice work Carlos 🙂

One of the most frequently asked questions at any startup event or investor panel, is “how do investors value a startup?”. The unfortunate answer to the question is: it depends.

via How does an early-stage investor value a startup? | the drawingboard [dot] me.

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