How to value your early stage start-up

  • Determine how much you need to grow to raise the next round of investment. e.g. $100K over 12 months.
  • Work out what you will give to an investor? Perhaps 5-20%
  • Therefore the pre-money valuation is $500K (20% for $100K) or $2m (5% for $100K)
  • How the range is actually determined depends on how the investor values your start up and your ability to grow and deliver.

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