Wed, 5 February 2020
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.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Let’s go startup something today!
Direct download: Startup_Funding_Espresso_--_Step_up_Valuation_method_1.mp3
Category: -- posted at: 8:48pm CDT