Angel investing

The art of startup valuations with Brian Ellerman

Welcome back to investor’s corner,  this week we’re going to talk with Brian Ellerman, angel investor and the founding director of Arizona FORGE.

As both a technology scout and angel investor, Brian brings a very impartial and diplomatic view to help entrepreneurs navigate early-stage investments.

Brian Ellerman

Brian Ellerman is the Founding Director of FORGE . To see his full bio, scroll to the end of this article. 

Lessons about the art of valuations:

  • Listen to and take into consideration expert investor perspectives: Active angels are seeing 100 or more presentations a month, and as a result, they know what valuations are normal, expected, and reasonable.
  • Ensure you are able to explain your valuation:   Being able to back up the value of the company with evidence will be extremely important, especially if you are outside the realm of normal, expected, or reasonable valuations.
  • There needs to be room for growth: As Brian said, smart investors know not to eat the whole apple. If an investor takes half of the company, what’s left for the entrepreneur?    “The best investors have a very open dialog with founders about a fair valuation and reasonable sized portion”.   Ensure that as you’re putting together your valuation and offer you leave room for growth.

Brian Ellerman’s Bio

Finding Opportunities and Resources to Grow Entrepreneurs (FORGE)
• Inspire and cultivate entrepreneurial thinking (FORGE’d at UA)
• Advance the entrepreneurial ecosystem (FORGE at Roy Place)
• Drive scale-up/launch acceleration (FORGE Ahead)

Angel investor (https://angel.co/brian-ellerman?public_profile=1) in 100+ and advisor for dozens of startups globally. Member of international Together. Health Steering Committee. Serve on various advisory boards, and founded the Tucson STEM Community.

Studied biology, chemistry, and mathematics at Wabash College, earned a BS cum laude in clinical pathology at Marist College, an MS in Management Information Systems from the University of Arizona’s Eller College of Management, Master of Legal Studies (ongoing) at University of Arizona’s Rogers College of Law, and studies toward a PhD in Organization and Management with a Specialization in Leadership at Capella University. Native Arizonan.

Episode Mentions:

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Connect with Brian Ellerman here:

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