Valuation · Kickstarter

Company valuation and sales projections based on Kickstarter success?

David Lynch Firmware and Python Automation Engineer

July 10th, 2014

Our product Sabertron just completed a successful Kickstarter for $233k.  We were also able to raise some money prior to the Kicksarter at a $600k valuation.  Given those figures, is there a formula for our pre-money valuation for future investment?  Can we project yearly sales from that Kickstarter figure?  Could we then use the 2x sales formula for valuation?
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Werner Krebs Financial & Marketing Software Developer

July 10th, 2014

An expert on corporate revenue models, such as myself, might be able to model your corporate revenues with additional data, assumptions & caveats. Those might include information about your sales and marketing activity that led to your Kickstarter success, and assumptions about future actions by your company, your competitors, the size of your market, &c. From data you provide below, it is generally not possible to even model revenue with any confidence, as you did not provide information about how much of your time or marketing expense went into your Kickstarter campaign. From estimates of future corporate revenue, an "accredited institution" such as a private equity firm or your financially sophisticated startup corporation, might use this as an input to shape a guess as to your valuation. However, without a detailed prior corporate history, early-stage valuation is as much an art as a science: it is whatever an investor is willing to pay given your metrics. I'd be happy to discuss further.

Sean Hurley Strategic Marketing Leader with strong financial results for growing organizations

July 10th, 2014

I find the Berkus method of valuation to be good.  Your valuation is derived from the size of the market you are targeting, the skill and depth of your management team, margin, and recurring revenue...Call me to discuss if you like...Everybody has a different methodology.  You want to be able to convey your method in an easy to understand manner.