Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In raising funding you’ll need to propose a value for the equity in your startup called valuation. One way to set a valuation is to use the 5X your raise method.

Here’s how it works.

Most investors want to see the valuation for their money coming in at 20%-25% of the post-money valuation.

This gives a 4X-5X valuation based on the investment.

For example, using 4X raising $500K, a $500K investment plus $1.5M pre-money, yields a $2M post-money valuation.

In another example using 5X raising $500K, a $500K investment plus $2M pre-money, yields a $2.5M post-money valuation.

Using this method, your pre-money ranges from $1.5M-$2M.

This gives you a ballpark estimate for setting the valuation of your raise.


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.
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Music courtesy of Bensound.

In this episode, Hall welcomes Grace Lee, CEO of Health Enovation.

Headquartered in New York, New York, Health Enovation provides Incubator and investor funding for health tech, wellness, and patient data analytics. They help startup entrepreneurs design the business and build engaging technology to aggregate and facilitate health data management. Health Enovation aims to help startups realize the missing components of their business that will determine if they succeed or fail. They also facilitate angel investors from Pharma, Insurance, and Healthcare in finding, evaluating, and conducting due diligence to invest in health & wellness tech startups. Health Enovation aims to minimize your regulatory, clinical, legal, and financial risk.

Grace is a serial entrepreneur and subject matter expert with 20+ years of experience in product development and launch, business design, healthcare, technology innovations, and customer & business data analytics in pharmaceutical, biotechnology, and healthcare. 

She is also an executive consultant for VPs and C-levels in designing and integrating businesses and technology innovations. She is a designer of patient and customer data integration platforms focusing on improved user engagement and customer experience. 

Grace is a published author of over 40 research publications in cancer, Alzheimer’s, and epilepsy and was recognized by the US government as an Extraordinary Scientist/Outstanding Researcher. 

Grace advises entrepreneurs and investors in the healthcare industry. She also discusses how she sees the industry evolving post-COVID-19.

You can visit Health Enovation at www.healthenovation.com. 

Grace can be contacted via email at grace.lee@healthenovation.com and via LinkedIn at www.linkedin.com/in/gracelee528/.