How would y'all value a startup apparel business. Primarily web-based. ~$60k in LTM revenue. Looking for funding, trying to establish a realistic valuation. Likely Friends and Family or Angels, not VC's at this stage.
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tough to place a value on company knowing only LTM revenue... but i'd say you're worth around 1x rev, ~$60k
Two approaches to valuation at that stage
1) Pick a valuation and be prepared to defend it (adjusting as you land a lead)
2). Structure as convertible debt that converts at a 20% discount to the next round
Apparel is an insanely difficult business. Feel free to PM me with details as I know that space well.
What makes apparel such a hard business?
Another major question here is how much do you need to raise, and how much are you willing to give up?
agreed with junkbondswap, it's way easier to set up a convert or a SAFE for now. This article may be helpful - https://www.ycombinator.com/documents/
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