My brother sent me the following article from last Sunday’s New York Times: A New Way to Gauge a Start-Up’s Worth.

Andrew Metrick of Wharton has come up with a new way to value a start-up’s worth. Utilizing a few reasonable assumptions in place of traditionally difficult to gather data, Professor Metrick’s method calculates a present value of a start-up’s future earnings without relying on the relative valuation of other companies’ stocks (which can provide widly inaccurate values).

A simple yet effective solution, we’ll see if it gets used in the wild.


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A New Way to Gauge a Start-Up’s Worth

Welcome to the conversation.

Hi, I'm Fraser and this is my personal site where I write about the things I'm interested in: start-up strategy, the web, music, and life.

My days are spent commercializing emerging technologies. Currently I'm helping to deliver the promise of semantic web to the consumer market at AdaptiveBlue. Previously I was at Trivaris, a Canadian seed stage investment firm.

I am a co-founder of Innovation Night, a community driven event supporting entrepreneurship in Canadian and US cities.

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