At today’s EO Accelerator Accountability Group meeting one of the topics I facilitated was around business valuations and estimating the value of a startup. For these startups with under $1 million in revenue the most common valuation range is 4-6x profits (e.g. $500k in revenue startup with $100k in profits might be worth $500k). After Accelerants went around and talked about how they viewed the value of their business they then answered the question “How much money would you need for it to be FU money?”
F%!@ You money is defined as the amount of money where you never have to work again and have the resources to do whatever you like, whenever you like.
After going around the room the general consensus was that FU money was between $5 million and $10 million after taxes. That number is probably double if you live in California or New York.
FU money is an interesting concept to think about and is a worthwhile mental exercise.
What else? What do you think of FU money and what’s your amount?
David Cummings on Startups 
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