The Factors That Drive a Startup Valuation

An In-Depth Interview with Redwood Valuation Director Tim Montgomery

Redwood Valuation’s Director Tim Montgomery recently sat down with the founder of WatchPitch, Trey Scott, to provide a behind-the-scenes look on what goes into the valuation of a venture-backed company. Tim discusses the numbers that matter – revenue growth, funding, cash runway – and also the significantly more subjective inputs – like the company’s story and momentum.

Tim and Trey bring a range and depth to the interview that is truly unique. Here are some of the highlights:

  • Who are the players? Get insight into the various players involved in the process, from founders to investors to regulators

  • What are the stakes? If valuations are sometimes sketched on a napkin by VCs, why is there increasing importance and scrutiny over truly defensible valuations for stock options purposes

  • What are the levers? Understand how the “numbers” and the “narratives” interplay to arrive at a valuation

Tim demonstrates his decades-plus years of experience focusing almost exclusively on venture-backed company valuations – a rarity in the valuation world. Other options for listening down below.

Expertise matters in uncertain times

Given the extraordinary events that have played out so far in 2020, founders and startup CFOs need to ensure their valuation factors in the unique impact on their business and the extraordinary market volatility. A seasoned valuation expert will incorporate the impacts of COVID-19 more thoroughly for clients than an appraiser with minimal experience. 

Drop us a line for timely insight into the COVID-19 disruption and its impact on a company valuation at info@redwoodvaluation.com.

Other options for listening to the interview

Listen via audio file direct download linkListen on ITunes via linkListen on Stitcher Podcast linkListen on Spotify via link

WatchPitch is a “matchmaker” platform for entrepreneurs and investors. Trey Scott is well-versed in the startup landscape having helped 1,000s of startups tell their story more effectively to an increasingly large audience of investors.

Previous
Previous

Appeals Case Highlights Critical Buy-Sell Agreement Issues

Next
Next

Everything You Wanted to Know About Purchase Price Allocations