Aifora’s €3M Raise Requires €30M in Revenue

German enterprise software startup aifora just raised €3 million from Capnamic.

Price

Assume, based on comparable deals, that aifora sold a 20% equity stake in their company to Capnamic.

Price startup = price deal / equity stake sold.

Then aifora is priced at €3 million / 20% = €15 million post-money.

Exit

Assume, based on comparable deals, that Capnamic wants to have a shot at making 10x on their investment.

Exit value = price startup * money multiple.

Then aifora’s €3 million raise requires a €15 million * 10 = €150 million exit value.

Revenue

Assume, based on comparable companies, that aifora trades at 5x revenue at exit.

Annual revenue at exit = exit value / revenue multiple at exit.

Then aifora’s €3 million raise requires €150 million / 5 = €30 million in annual revenue at exit.

Originally published at venturevalue.com on February 4, 2019.