Valuation: Step up Valuation Method

In raising funding, valuation is a key number the CEO and investor must come to agree with. 

As a startup you must determine your target valuation.  There are several methods. One method is called Step up Valuation

It uses ten factors. Each factor adds $250K to the valuation

To calculate your total pre-money valuation add $ 250,000 for each:

- Total market size over $500M

- Business model scales well

- Founders have significant experience

- More than 1 founder committed full-time

- MVP developed, customer development underway

- Business model validated by paying customers

- Significant industry partnerships signed

- Execution roadmap developed and being achieved

- IP issued or technology protected

- Competitive environment favorable

You may give partial credit for items that have some progress made.

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