my blog– which is a Google blog,so that a good think about it– I post my valuation of Apple,because I don’t believe in hype–$,with the seven to one split.Not everything works out that well.But what I’m trying to say is, don’t let uncertainty stop you.And especially in the technology business,I find this defense to be very troubling.You ask people, why are you not valuing this company?Because there’s too much uncertainty.What does that mean?Your estimates could be wrong, but that doesn’t meanyou can’t make an estimate.

Saying that this too much uncertainty to do SMSF Auditor a valuationand then investing in the company,to me, is the height of insanity.And lots of venture capitalists go through that cycleover and over again.They say, I don’t want to value the company,but I’ll invest in the company.You can’t tell me one thing and do the other.So if you cannot value the company,at least do the logical thing and never invest in thosecompanies.But if you want to invest in young growth companies,you have to get your hands around those numbersand make your best estimates.Now, of course, with a young startup,all these questions become more difficult to answer.

In you’re the founder of a young startup,let me ask you the four questionsto which I need answers.And you’re going to see why life is so much more difficult.First question– what are you cash flowsfrom existing assets?You’re a young startup.What the answer to the question?What assets?I have nothing.I’m sitting on a chair.I don’t even own it.OK, that was easy.Then I ask you, how much value do you thinkfuture growth will bring in?You say, a lot.I say, can you be a little more specific?Not really– I don’t even have a business model yet.I say, how risky are you?Very.But you can’t give me past prices and earnings,

because you haven’t been around.I say, when will you be a mature company?And you fall on the ground laughing.You might not even make it through tomorrow.Every question becomes like pulling teeth.And that’s why, with young startups, people give up.My suggestion is, rather than give up,make your best estimates.Don’t put the weight of the world on your shoulders,saying, I have to be right.You cannot be right, but you can still make estimates.