Your nascent startup is progressing well, and you’ve decided you want to raise $X at a pre-money valuation of $Y. How do you figure out what X and Y should be? In this post, I’m going to outline a potential algorithm for calculating X and Y. Note that valuations are part science, part art, so this algorithm is meant to serve as a good starting point, not as a set of unbreakable rules.
An Algorithm for Seed Round Valuations
An Algorithm for Seed Round Valuations
An Algorithm for Seed Round Valuations
Your nascent startup is progressing well, and you’ve decided you want to raise $X at a pre-money valuation of $Y. How do you figure out what X and Y should be? In this post, I’m going to outline a potential algorithm for calculating X and Y. Note that valuations are part science, part art, so this algorithm is meant to serve as a good starting point, not as a set of unbreakable rules.