It is hard to predict which startup will succeed and which not. As in any similar situation people use different metrics to base their answer on them. Before you ask an investor to give you money, it is a clever idea to calculate as many startup metrics as possible. In this post I am sharing with you some information about the most important metrics. I made a list of videos that teach you how to calculate metrics that really matter.
Equity Calculation
It is hard to make an equity sharing system that is always fair. The best way, as far as I see, is an always changing proportion. Why should we make such a complicate model? You will learn it in this video. It is long, but worth watching. https://www.youtube.com/watch?v=pLGDba8aSWE&t=1149s
Total Addressable Market Calculation
The evergreen question is how large your market is. You can calculate it in simple way. Watch the video. 8-9 minutes later you will know how to prove or disprove the business potential.
Default Dying or Default Surviving Calculation
It is a calculator that is useful in the post-seed phase of a startup. If you have a product that you are selling and you already know who big your expenses are plus you have some money in the bank, but you do not know if you could survey without new investment or not, it is a must to do this calculation. It is not a video. It is a method description, but easy to understand.
Startup Value Calculation1
In the next video you can find logically built methods to valuate startups at all stages. This is a clear explanation. You can make your calculations in a short time, but it is not the only video am sharing with you about startup value calculation. Although this video was made for beginners, other people can make use of it too.
Startup Value Calculation2
If you need to know more about startup valuation and you have got the time to read, I suggest you to check this article out: https://www.investopedia.com/articles/financial-theory/11/valuing-startup-ventures.asp
Startup Value Calculation3
If your startup is a baby, but you are sure and you can reason why it will be a big thing, this video is for you. There is not a metric shown in the video, but based on what you can here, you can make it on your own. What you can do is a formula telling what the highest amount is you should evaluate your startup in the first round of investing, that it could create a good situation in the second round of investing.
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