How to give a valuation to a potential investor?

[monsterer]

Hi guys,

I'm in the position where I'm speaking to an investor about putting some money into blockchain-reaction, but I must confess that I'm having real trouble trying to come up with a valuation (we're talking about a 50/50 split) having never dealt with this kind of thing before.

I'd really appreciate some advice from someone who's been down this path before.

Cheers, Paul.

[nick1098]

Hi Paul,

Firstly, congrats on the app!

With regards to investments and valuations, many different methods, but based the fact you have a working product, active users, generating revenue and you guys are proven in the gaming space (I checked out the wildbunny URL) I wouldn't value the opportunity at less than £100k.

Of course I don't have your full story, but if you are working on a bigger vision or there is a cool platform/enterprise strategy then you could double or triple the valuation.

Paul, I can see your UK based - have you looked in to SEED EIS? This is a very attractive, tax friendly investment - meaning you and your potential investors get more bang for your buck.

Check it out: http://www.hmrc.gov.uk/seedeis/

Feel free to PM me with any further questions

Thanks

Nick