Dilution 101: Calculation And Examples
What is dilution? TLDR: Dilution is the reduction in the ownership percentage in a certain…
Startup Valuation: The Ultimate Guide for Founders
For many early-stage founders, the topic of startup valuation can feel like navigating a dense fog.…
Startup Valuation: The Ultimate Guide
Startup valuation underpins all startup fundraising activity, enabling novel propositions to be…
ESS Valuations Made Easy: How Australian Founders Can Streamline the Process
For Australian startups, the talent war is real. While established companies can offer hefty…
Why Fundraising and ESOP Valuations Are Different
When founders think about valuation, it’s often in the context of raising money — negotiating…
Equity Compensation for UK Startups: A Comprehensive Guide to EMI and Employee Share Options
Introduction: Why Founders Should Issue Equity to Employees Understanding the UK Regulatory…
Startup Valuation Trends: AI and Mega-Funds [The Equidam Podcast – 15]
In this conversation, Daniel Faloppa and Dan Gray discuss the current state of the fundraising…
Europe’s ESOP Opportunity Starts in the Baltics
Europe is entering a new era of technological ambition. From initiatives like Project Europe and EU…
Average Growth Rate For Startups
Editor’s note: This post was originally published in November 2016 and has been updated…
The Growth Flywheel: Why Europe Needs to Fix Its Stock Option Problem
“There is a doom loop around Europe and we need to change that. The brain drain to the US is very…
The Best Startups Are Valued, Not Priced
In the world of startup fundraising, the terms “valuation” and “price” are…
The State of VC in Q1 2025 [The Equidam Podcast – 14]
In this episode, Dan Gray and Daniel Faloppa discuss the current state of the startup ecosystem,…
Price vs Value: The Momentum Trap in VC
“You can value an asset, based upon its fundamentals (cash flows, growth and risk) or price…
Why Negotiating Price With Investors is a Trap
When raising venture capital, founders often get fixated on price—the final figure on the term…
How to Exit for $1B and Walk Away With Nothing
In startup fundraising, success stories dominate headlines. We hear about multi-million-dollar…
ESOP Valuation: Common Mistakes and Best Practices
Table of Contents Introduction: Why ESOP Valuations Matter Understanding ESOPs and Their Role in…
PARAMETERS UPDATE P6.0
On January 29, 2025, you’ll be upgraded to the latest version of Equidam with updated valuation…
EBITDA Multiples by Industry in 2025
You can find in the table below the EBITDA multiples for the industries available on the Equidam…
Average and maximum valuations for Scorecard and Checklist
You can refer to the table below to see the average valuation for the Scorecard Method and maximum…
Making the Most of Investor Meetings
First Principles Fundraising #5 In our First Principles Fundraising series, we’ve already…
The State of European Tech, with Robin Wauters [The Equidam Podcast – 13]
In this conversation, Daniel Faloppa and Robin Wauters discuss the evolution of the European tech…
Investment in AI: Long-term defensibility and value creation [The Equidam Podcast – 12]
This conversation explores the rapid rise of AI investment, the differences between AI…
How to Run a Tight Fundraising Process
First Principles Fundraising #4 Over the course of this series, we’ve taken a first…
How To Choose the Right Investor
First Principles Fundraising #3 In our “First Principles Fundraising” series, we’ve…
Are You Investment Ready?
First Principles Fundraising #2 In Part 1 of our First Principles Fundraising series, we examined…
Is Fundraising the Right Move for Your Startup?
First Principles Fundraising #1 For many founders, venture capital (VC) is often perceived as the…
$5 Billion and 150,000 Companies Later, What We’ve Learned
Twelve years ago, we set out to change the way startup valuation was approached. Since 2013, the…
The State of Funding in Southern Europe: Insights from Rome Startup Week 2024
At this year's Rome Startup Week, a notable panel titled "The State of Funding in Southern Europe"…
PARAMETERS UPDATE P5.9
On September 25, 2024, you’ll be upgraded to the latest version of Equidam with updated valuation…
Equity Percentages to Offer Investors at Different Stages
You might occasionally come across the sentiment that “early stage investors don’t…
How to set your SAFE Cap
SAFEs (Simple Agreements for Future Equity), and other regional variants of the SAFE, have surged…
How to set your SAFE Discount
SAFEs (Simple Agreements for Future Equity), and other regional variants of the SAFE, have surged…
How To Value a SaaS Startup
Every startup valuation presents a unique challenge. It’s not just about throwing numbers into a…
SAFE Caps & Discounts: Creating simpler and more transparent instruments [The Equidam Podcast – 10]
In this conversation, Daniel Faloppa and Dan discuss the evolution and complexities of SAFEs…
SAFE Caps and Discounts: Setting the right terms for your round
Increasingly, founders are turning to convertible instruments (40-95%, depending on round size)…
Revenue and EBITDA Multiples: The role of comparison in startup valuation
Multiples are the cornerstone for understanding the share pricing for companies of all sizes, from…
The $5B Club: Irrationality in Generative AI valuation
How do you value startups creating foundational LLMs, or related generative AI technologies? So far…
Building a Winning Data Room: Best Practices for Early-Stage Startups
For early-stage startups looking to onboard prospective investors, a well-organized data room is an…
Building venture success across Europe with Peach Zwyssig of Axelra [The Equidam Podcast – 9]
In this conversation, Peach Zwyssig, CEO of Accelra, discusses the intricacies of building tech…
Building Confidence: The Purpose of Financial Projections for Startups
For early stage startups seeking investment, especially pre-revenue companies, there’s a…
Equidam Startup Valuation – What’s in the report?
In this article, we’ll cover our video walkthrough of Equidam’s startup…
The Hype Trap: Valuation for AI Startups
In a difficult environment for founders and investors, AI startups have been the obvious outlier…
Case Study: Spiro Carbon – Democratizing Carbon Credits
Spiro Carbon enables robust sustainability monitoring across the agricultural supply chain, making…
Estimating AI Startup Market Size for Effective Fundraising in 2024
At the heart of every conversation between AI startup founders and potential investors, lies a…
Revenue Multiples by Industry in 2024
You can find in the table below a list of revenue multiples broken down into the same industry…
Beyond the Hype: Credible Valuation for AI Startups
Against the backdrop of a frosty market for startup fundraising, AI companies are raising large…
PARAMETERS UPDATE P5.8
On February 29th, 2024, you’ll be upgraded to the latest version of Equidam, with updated…
How to Calculate Startup Valuation: Step by Step
Valuing a startup can feel like plotting a course in the dark, as you try to reconcile significant…
The Challenge for Venture Studios
Venture Studios are an innovative approach to venture capital which aim to reduce investor risk by…
A Manifesto for Effective Crowdfunding
Maximizing Value for Startups and Investors In recent years, crowdfunding has revolutionized the…
The Role of Intangible Assets in Startup Valuation
When analyzing the value of startups, the interplay of tangible and intangible assets becomes an…
How to Raise Your First Round: A Step-by-Step Guide to Startup Fundraising Strategy
Fundraising for your startup is more than just a quest for capital; it’s about creating a…
Startup Valuation Methodology & Externalities [The Equidam Podcast – 8]
In this conversation, Dan and Daniel explore the origins and evolution of Equidam, a platform…
Understanding Startup Valuation: Intuitions from real estate
Similar to startups, valuing residential real estate presents a particular set of challenges: each…
Benchmarks for startup revenue growth
One of the hardest parts of building a truly innovative company is understanding what success looks…
What is a “good” valuation for your startup?
A question that comes up fairly often in our workshops: “What is a good valuation for my……
Artificial Intelligence and the Y Combinator premium [The Equidam Podcast – 7]
In this episode of the Equidam podcast, Dan Gray and Daniel Fuloppa discuss recent updates in…
PARAMETERS UPDATE P5.7
On September 12, 2023, you’ll be upgraded to the latest version of Equidam with updated valuation…
Equity Incentives: Best Practices for Startup Founders
Guest post from an Equidam partner: Bianca Iulia Simion, Marketing Lead at SeedBlink As the world…
The role of AI in Startup Valuation
If you’ve been in the orbit of ‘tech’ at any point in the last six months, you’re likely to have…
How To Create a Startup Pitch Deck – [Template included]
Pitch decks are a set of slides that clearly describe your value proposition, your business case,…
Equidam releases Valuation Delta™: Global benchmarking tool for Startup Valuation
After a decade of helping founders, investors and advisors to close fairer fundraising deals,…
Valuation for growth startups and maturity stage companies
Use Equidam to calculate a fair valuation for your company at any stage of development, with the…
The ROI of Venture Dollars, with Will Bricker of Hustle Fund [The Equidam Podcast – 6]
In this conversation, Will Bricker, a venture capitalist at Hustle Fund, shares insights into…
Startup investors must consider fair value, or risk another crash
For over a decade Equidam has supported founders (and investors) with the challenge of setting a…
Fundraising in 2023: The ‘Dry Powder’ Conundrum
Since the start of the year, two main narratives have emerged in early stage investment: The first…
Advanced Multiples: The tools of valuation professionals at your fingertips
Nothing can be priced in a vacuum, and so there is always some comparative element to startup…
The role of qualitative methods in startup valuation
In a previous article, we looked at the role that financial projections (and the associated DCF…
The Founders’ Financial Crisis: Silicon Valley Bank [The Equidam Podcast – 5]
In this episode, the hosts discuss the recent crisis surrounding Silicon Valley Bank, exploring the…
The State of Startup Valuation – February 2023
Note: We update our startup valuation parameters on a regular basis, in order to stay current with…
The State of Startup Valuation – February 2023 [The Equidam Podcast – 4]
In this episode, Dan and Daniel discuss the recent parameters update for the Equidem platform,…
The 10 Characteristics Of Startup Valuation
Startups are innovative, fast-paced, and highly dynamic entities that play a crucial role in…
The role of financial projections in startup valuation
The valuation of early stage companies is a one of the more complex and contentious topic in the…
PARAMETERS UPDATE P5.6
On February 23, 2023, you’ll be upgraded to the latest version of Equidam with updated valuation…
The Drivers of Valuation in Venture Capital [The Equidam Podcast – 3]
In this episode of the Equidam podcast, Dan Gray and Daniel Faloppa delve into the complexities of…
The role of founder-led valuation in startup fundraising
For a long time, the standard has been for founders to let their lead investor worry about deal…
Calculate ROI for your Angel Portfolio – Spreadsheet Included
Angel investing is the practice of investing in startup companies, typically at the earliest…
What connects interest rate rises to startup valuations
New day, new interest rate rise. A few serious faces from the Fed announce that they will do…
Startup Valuation – Everything We Know
In this post, we'll discuss everything that we have learned in the last 10 years performing startup…
Startup Valuation: navigating opportunity
“Every number in your valuation has to have a story that’s attached to it. And every story you tell…
Challenges for Venture Capital [The Equidam Podcast – 2]
In this episode of the Equidam podcast, Dan Gray and Daniel Filippo discuss the evolving landscape…
Welcome to the Equidam podcast! [The Equidam Podcast – 1]
In this episode of the Equidam podcast, Dan Gray and Daniel Faloppa delve into the intricacies of…
PARAMETERS UPDATE P5.5
On September 22nd, 2022 you’ll be upgraded to the latest version of Equidam with updated…
Did VCs overpay during the pandemic?
Being a VC is not easy. It's one of the few jobs with minimal feedback on your performance for up…
10 Newsletters to Keep Tabs on Startup Fundraising
On Sunday morning, there’s nothing better than a good coffee and your favourite newsletter.…
How many years to forecast for startup fundraising?
TLDR: For startups, 3 years is the most common. 5 years if you are in a later stage (Series B+) or…
How to value your startup for a friends & family round
When we raised our first round of capital for Equidam, about a decade ago, we didn't know much of…
What connects the stock market contraction to startup valuations?
In an analysis of the market, Justin Kahl and David George of Andreessen Horowitz showcase data on…
How to value your startup for crowdfunding?
In 2013 equity crowdfunding was making headlines as the new frontier for startup investment.…
How much do UK startups raise?
The current fundraising environment There’s never been so much capital available for startups… and…
Fundraising Strategy: How Much and When to Raise
There’s no shortage of content covering startup fundraising advice, whether it’s solidifying your…
Case Study: Yotta Energy – Scaling Solar Power
Yotta Energy are creating more opportunities for solar power, with their end-to-end solution that…
7 Steps to Solidify Your Startup’s Financial Projections
For early stage startups, multi-year financial projections may feel too speculative to be a good…
Debunking the ‘Startup Bubble’ With Valuation Data
A startup is overvalued when its price is not rational. Through Equidam's data, we see that a…
PARAMETERS UPDATE P5.4
On November 29th, 2021 you’ll be upgraded to the latest version of Equidam with updated…
VC Perspectives: The misconception about convertible loans
Convertible loans: a loan with interest (whether actually paid or accrued), in which the loan will…
Employee Stock Options Template
Preparing employee stock option agreements is a complex and lengthy process. This is why we decided…
Convertible Note Template
Convertible loan agreements involve a multitude of terms, which facilitate their execution.…
Company Valuation In Decision-Making
It’s not uncommon for business owners to be aware of the valuation of their company. What is…
Average Discount Rate For A Convertible Note
A few weeks ago, we built and released a convertible note calculator. It’s useful for making…
Business Angels or Venture Capital?
Angel investors are individual investors who provide capital to early stage startups in exchange…
How to Estimate Market Size for a Startup
Rachleff’s Law of Startup Success (of Andy Rachleff, formerly of Benchmark Capital) The #1…
How To Value A Business
Valuation is too often where the conversation between investors and founders falls apart. With a…
2018: megarounds, crypto-sobering and more IPOs to come!
2018 has been an intense year in the startup funding world. While for early stage companies seed…
How Do Investors Value A Startup?
Valuing companies is tricky. The methods used to value a company are dependent on the stage of…
The Discount Rate in Startup Valuation
If you approach a Venture Capitalist or a Business Angel, you will probably hear that “I need to…
The Seed is Dead, Long Live the Seed
As Q4 2018 draws near, we receive more and more confirmations of what cannot be called a chance…
Fundraising: A Treasure Map
When it comes to fundraising, entrepreneurs are like knights on a quest to find the Holy Grail.…
Why isn’t asset based valuation for startups?
Many entrepreneurs have the misconception that the value of their businesses is the sum of their…
How much value do you really capture from your data?
With the growth of IoT and connected devices, companies can capture and store more and more data.…
Can Uber’s Valuation Be Explained By Only Numbers?
Can you measure the value of a company relying entirely on financial tools and models? Should you…
People crying, systems crashing, risking bankruptcy – it’s all logical
In 2001, the career of Kees de Jong went through a pivotal moment. Right in between his first…
Hiring at seed stage: for 10X users, look for “10X” people
With the ongoing conversation about growing and scaling a startup from pre-seed and seed stage to…
Milestones To Raise Series A In 2017
Do you prefer to listen to podcasts? Listen to the audio here Any metric of VC activity has…
How To Increase Valuation
Do you prefer to listen to podcasts? Listen to the audio here I have a patent and that is a reason…
Term Sheet: Common Terms & Practices To Be Aware Of
In this post we are going to touch upon some of the concepts that occur in a term sheet and the…
DCF in Startup Valuation
Question: Why would you use financial methods for the valuation of a startup company? Answer:…
Investors in The Netherlands
This table includes a list of investors and crowdfunding platforms active in The Netherlands, with…
Unit Economics For Startups
Do you prefer podcasts? Listen to the audio here Unit economics are basically a summary of your…
Valuation Multiples: Why Do We Use Them & How [Video]
Multiples is a term widely used in lots of valuation theories. But why do we use valuation…
Burn rate: what it is and how it influences fundraising
Why does your accounting show different figures from your actual cash flow? How long can…
What Investors Look For In An Entrepreneur
Do you prefer podcasts? Listen to the audio here A lot of trust is involved in investing in…
Incubator Or Accelerator: Which One Should You Choose?
Do you prefer podcasts? Listen to the audio here You probably have heard of incubators and…
Convertible Debt vs Equity Financing
Do you prefer podcasts? Listen to the audio here. You have probably heard of the concept of…
Comparables: How To Use Them To Defend Your Valuation [Video]
Do you prefer podcasts? Listen to the audio here. In valuation theory, comparables are referred to…
Employee Stock Options: Common Practices And Examples
In our previous post about how much equity to offer to investors at different funding rounds, we…
How To Reach Out To Investors [Video]
Do you prefer podcasts? Listen to the audio here In our post about the right timing for…
Planning and Timing Fundraising
Fundraising is an activity that requires considerable time and effort and, as founders, we often…
Read This Before Writing A Business Plan
Call them unfashionable, long, unread, or boring, business plans are still the main way to…
Financial Projections: The Top-Down Approach
Suggested reading: Startup Projections, How to Start Financial projections cause headaches to many…
Financial Projections: The Bottom-Up Approach
Suggested reading: Startup Projections, How to Start Financial projections cause headaches to many…
Negotiating with investors: 3 elements that make your story compelling
Company valuation is not only about financials: the story you present to investors significantly…
Convertible Debt: risks and terms to be aware of
Do you prefer podcasts? You can listen to it here. Gianluca Valentini, co-founder of Equidam,…
What to offer to investors?
Do you prefer podcasts? Listen to the audio here Entrepreneurs who are in the process of raising…
Raising seed capital
Do you prefer podcasts? You can listen to it here. Entrepreneurs who are in the process of…
The Definitive Guide To Startup Valuation
This article originally was published on the MergeLane Blog and is republished with permission of…
Lower Valuations Explained: Should Entrepreneurs Care?
“Morgan Stanley marked down it’s Flipkart participation[1]”, “Fidelity…
How To Rock Your Crowdfunding Campaign
This infographic originally apparead on Vound Software Blog How to rock your crowdfunding campaign?…
How Do Convertible Notes Work [Infographic]
After discussing how to price convertible notes, we realised that there is a simpler way to explain…