User description

This is a pre and post money valuation spreadsheet for valuing a startup. The spreadsheet can be used by anyone who is planning to invest in a new business as a pre offer document. Entrepreneurs can use it as an exit strategy when selling their company to someone else. Two12 has been created by Bill Dierma to assist entrepreneurs in pre and post money valuation of their business.The pre and post money valuation spreadsheet enables an early-stage startup to accurately enter the anticipated capital required, the percentage of total equity owned by the owner and the expected return on investment. By using the spreadsheet, potential investors have a clear picture of their investment requirements and can make informed decisions on which types of funding they will consider. Investors can also easily evaluate the return on investment over time. This document can be very useful for entrepreneurs preparing for their first financing deal.The pre and post money valuation spreadsheet is easy to customize to include all of the required information to calculate the pre and post money valuation of your business. It uses the same formulas that the financial models used in the financial projections tool in Microsoft Excel. All you need to do is enter the investment required, the estimated annual earnings, the weighted average price per share (WPA) and the cash flow projection for one year to get the investment value.There are four major categories of potential investors. There are also six valuation categories. They are the angel investors, venture capitalists, institutional investors, limited partners, individual investors and the first line of defense, the personal finances. To adjust the pre and post money valuation formula for these categories and their funding sources, one would modify the spreadsheet accordingly.The pre money valuation calculator is based on the assumptions that the categories of financing are based on. Therefore, it may not accurately represent the financing required. This may be due to missing private company investors or venture capital. Two12 may also be too broad and difficult to represent with data. In addition, it may undervalue the valuation of new start-ups or growing companies.The pre and post money post-valued financial projections are useful for funding purposes. Investors can use this to estimate the anticipated investment needed to get the business profitable. It also represents the growth potential for the business. The financial projections allow for an easy comparison with the real market. They can help investors make good investment decisions. They are also useful for evaluating funding programs and projects.There are different ways to modify the spreadsheet to reflect a pre or post money valuation formula. You can change the cells to show positive numbers instead of negative numbers. You can adjust the range of estimates to more closely match the actual numbers. The information is still useful for funding purposes as it represents the funding required for the enterprise.The valuation spreadsheet can be used for valuation of financial assets or intangibles such as patents and trademarks. It is also useful for valuing short term assets such as inventory and accounts receivable. The valuation of intangibles is intended to provide a comparable basis for the pricing of the underlying investment. For example, the cost of an unknown patent could be determined by the price of competing patents. These post - money valuation techniques allow you to get a picture of the financial valuation of the enterprise as well as compare that to similar enterprises using pre - money methods.The spreadsheet can also be used for the purpose of setting incentives for employees and for owners of intangibles. It helps managers calculate the value of an intangible asset based on its fair market value and compare it with similar assets of similar profiles. It is also useful for determining the value of the intangible assets owned by the enterprise. The spreadsheet has sections for valuation of financial data, valuation of intangibles, portfolio management, venture capital, control of risk management and identification of organizational goals. Two12 training classes adopt the post - money method of valuing an enterprise's stock since it is the most widely accepted method in the business world. However, there are many management practitioners who still prefer the pre - money method since it is believed to be more accurate. The valuation of financial data used in the pre - money technique compares the value of an entity using cash as against its book value. It takes into account only market prices and never the intangibles value.Many companies use the pre - money method of valuing their businesses because they believe that this method provides a near perfect comparison. However, others do not believe that using the pre - money technique provides a near - perfect comparison. Nevertheless, there is still considerable disagreement between practitioners about the optimal method of valuing business assets. Thus, it is advisable for managers to acquire the best knowledge about the various methods of valuation that they use before they adopt one.