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.