My start up is in a similar place right now and I've been trying to come up with a valuation.

The problem is that so many of the normal methods taught for valuing a company break down for an early stage start up. How do you predict your free cash flow in the future without pulling a number out of nowhere? How do you come up with a meaningful weighted average cost of capital when you have little debt or equity on your balance sheet.

I think what we'll be doing is looking at our earnings and then setting our valuation at a simple multiple of earnings plus assets.

Very interesting to see you guys on here as my start up is very similar. We're focused on selling editorial side products to help college newspaper websites succeed. The plan though is to eventually expand to all local news sites.