How can an early-stage, zero revenue company be worth more than a stable earner?
Writing to business owners, Susan Schreter in FoxBusiness asks, “Why is it that an unprofitable, research stage technology company with no revenues can be worth millions more than a stable service or manufacturing business with several years of revenues and profits?”
She answers her own question by listing six fundamental factors that influence the value of a business; not surprisingly, half relate directly to, and the other half can be impacted by, intangible property.
No. 1: Revenue predictability
No. 2: Customer lists
No. 3: High gross margins
No. 4: Intellectual property advantages
No. 5: Brand strength
No. 6: Low debt
Many university startups are zero-revenue companies, and many are destined to have a big impact on the US economy, increasingly attracting the attention of savvy investors. The University Startup Directory contains an indexed listing of 1,000-plus university startups, complete with contact information when available.