A Guide to Startup Valuation

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On December 10, 2020, when Airbnb opened at $146 per share on NASDAQ in its first day of trading, the company more than doubled the $68 share price set for its IPOโ€”and more than doubled the valuation the company had set for its market debut in the process.
The drastic share price change was caused by a simple fact: the public valued Airbnb differently than the investment banks who helped the company set its share price for the IPO. But how can there be such a disagreement over the value of a business?
In our latest blog post A Guide to Startup Valuation, we break down business valuation, from the methods used to determine valuation to the differences between pre- and post-money valuations, so that you have a better understanding of valuations and how they are set. That way, when you come across a company’s valuation on StartEngine, you have a better understanding of where that figure comes from.

StartEngine Was Featured on the Cover of the LA Business Journal!

Our Co-Founder & CEO Howard Marks spoke to the LA Business Journal about the struggle he saw firsthand when he invested in 60 entrepreneurs between 2010 and 2014 and how difficult it was for those entrepreneurs to raise additional funding, particularly for the female and minority founders.
That is why Howard founded StartEngine. To level the playing field and give entrepreneurs who may not have access to venture capital and accredited investor networks the opportunity to raise from another source of funding: the crowd. “There are millions of people out there who want to invest. We’ve got to create that marketplace,” said Howard.

Campaign Updates of the Week

Como Audio | 2020 Sales Growth
Como Audio had an exciting year even in the face of the pandemic, with its direct to consumer sales up over 40% from last year.

Cadi | Strong Traction
Cadi recently signed letters of intent with 63 golf courses to provide kiosks, bringing retail back to the golf course.

Mazarine | Miami Marina Partnership
Mazarine has secured a partnership with Sunset Harbor Yacht Club in Miami to provide its solar-powered dock boxes, serving as a high-profile showcase of its products.

ZenSpace | Another Westfield Location
ZenSpace recently installed one of its lounges at the Westfield Valley Fair, Silicon Valleyโ€™s premium retail destination.

Honeydrop | Team Updates
Honeydrop promoted its CMO to President & CEO, while also adding new board member and Creative Director, Lane Cheek, who will leverage her media and marketing experience to grow the brand.

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