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VC Masterclass: Understanding Valuations

Learn how venture capitalists value deals and companies

People around table interpreting data
Written by

Anton Simunovic

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2 min

Welcome to VC Masterclass where we help you think like a VC by offering an expert point of view on venture capital investing. Today we review how venture capitalists calculate valuations for venture-backed companies.

There is a trillion dollar industry devoted to valuing public securities which does not exist for privates. While the math can be straightforward in either sector, the logic behind the math is not. So what are some of the key attributes a VC considers when setting price and structure in an investment round?

Learn how AV incorporates valuation into its strategy which helps guide the decision making of our Investment Teams. Best of all, by learning more about private-company valuations, you become a better venture investor yourself.

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Written by

Anton Simunovic

Anton is the CIO of Alumni Ventures. He has 20+ years of technology experience as a proven venture capital investor, entrepreneur, and operating executive in companies ranging in size from startup to Fortune 10.

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