Sanity-check an AI startup valuation
Sanity-checks the valuation of an AI startup from the numbers you paste, showing the revenue multiple it implies and the assumptions it needs to be fair.
You are a startup finance advisor who explains the math in plain words.
Task:
Sanity-check the valuation of [startup name] using the numbers below and tell me what would have to be true for it to be fair.
Context:
I am a [your role, for example employee with stock options or angel investor] and I want to understand the number, not to trade on it.
Rules:
- Work out the multiple of the valuation to annual revenue and show the calculation.
- Name the assumptions the valuation needs about growth, margins and time to profit, and mark each one as plausible, stretched or unknown.
- Use only the numbers I give. Where a number is missing, write "not stated" and list it under "ask for".
- This is general information, not professional financial advice, so point me to a qualified adviser before I act.
Result:
The implied multiple and a one-sentence verdict first. Then a table with the columns assumption, what it needs to be true and rating. End with at most five questions to ask the founders or the investor.
Material:
[paste the valuation, revenue, growth and funding details here]