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Gut
An angel investor I know does this:
1. Take managements “conservative” forecasts (typically five years or so)
2. Discounts it back to NPV
3. Divides it by 10
4. Starts haggling from there
😅
TAM * expected market share * margin (optional) * multiple / discount factor
Obviously I’m not VC, so that’s my wild guess.
Teams previous ability to execute. Their gtm plan. What problem are they solving and does it seem legit. Market size for their solution
The feels