<blockquote><p>Founders raising always have strong valuation expectations guided by dilution &#x26; capital requirements. VCs are price takers deciding if the valuation is fair &#x26; gives founders the best chance of success. If not step away. It’s about a common understanding of the path to win.</p></blockquote><p>- Mattias Ljungman, Founder at Moonfire VC and former cofounder of Atomico</p><h2 id="how-to-value-a-startup-9-methods-explained-blog-post-by-stphane-nasser" class="group relative whitespace-pre-wrap -ml-2 pl-2 scroll-mt-20 sm:scroll-mt-5"><a href="#how-to-value-a-startup-9-methods-explained-blog-post-by-stphane-nasser" class="absolute top-1 -left-5 opacity-0 border-0 group-hover:opacity-100" aria-hidden="true" tabindex="-1" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none" target="_blank" rel="noopener noreferrer"><div class="w-6 h-6 text-slate-500 ring-1 ring-slate-900/5 rounded-md shadow-sm flex items-center justify-center hover:ring-slate-900/10 hover:shadow hover:text-slate-700 dark:bg-slate-700 dark:text-slate-300 dark:shadow-none dark:ring-0"><svg class="w-4 h-4" viewBox="0 0 24 24" fill="none" stroke-width="1.5" stroke="currentColor" aria-hidden="true"><path d="M13.19 8.688a4.5 4.5 0 011.242 7.244l-4.5 4.5a4.5 4.5 0 01-6.364-6.364l1.757-1.757m13.35-.622l1.757-1.757a4.5 4.5 0 00-6.364-6.364l-4.5 4.5a4.5 4.5 0 001.242 7.244" stroke="currentColor" stroke-linecap="round" stroke-linejoin="round"></path></svg></div></a><strong>How to value a startup - 9 methods explained </strong><br><strong><em>(blog post by Stéphane Nasser)</em></strong></h2><img src="https://s3.amazonaws.com/versoly/images/177302d9-3657-45b7-ac9d-acf801d83a74/d0ed02e2-c150-4de8-91c2-100d59085a31.png"><p>Source link: <a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://www.stephnass.com/blog/how-to-value-a-startup" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">https://www.stephnass.com/blog/how-to-value-a-startup</a></p><hr><h2 id="what-every-earlystage-founder-should-know-about-valuations-blog-post-by-lolita-taub" class="group relative whitespace-pre-wrap -ml-2 pl-2 scroll-mt-20 sm:scroll-mt-5"><a href="#what-every-earlystage-founder-should-know-about-valuations-blog-post-by-lolita-taub" class="absolute top-1 -left-5 opacity-0 border-0 group-hover:opacity-100" aria-hidden="true" tabindex="-1" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none" target="_blank" rel="noopener noreferrer"><div class="w-6 h-6 text-slate-500 ring-1 ring-slate-900/5 rounded-md shadow-sm flex items-center justify-center hover:ring-slate-900/10 hover:shadow hover:text-slate-700 dark:bg-slate-700 dark:text-slate-300 dark:shadow-none dark:ring-0"><svg class="w-4 h-4" viewBox="0 0 24 24" fill="none" stroke-width="1.5" stroke="currentColor" aria-hidden="true"><path d="M13.19 8.688a4.5 4.5 0 011.242 7.244l-4.5 4.5a4.5 4.5 0 01-6.364-6.364l1.757-1.757m13.35-.622l1.757-1.757a4.5 4.5 0 00-6.364-6.364l-4.5 4.5a4.5 4.5 0 001.242 7.244" stroke="currentColor" stroke-linecap="round" stroke-linejoin="round"></path></svg></div></a><strong>What Every Early-Stage Founder Should Know About Valuations </strong><br><strong><em>(blog post by Lolita Taub)</em></strong></h2><p><strong>Factors that affect valuations (from Venture Deals, author Brad Feld) comments by Lolita Taub:</strong></p><ol><li><p><strong>Stage of the company:</strong></p></li></ol><ul><li><p>Early-stage valuation is impacted by factors such as entrepreneur experience, the perception of overall opportunity, and the amount being raised.</p></li><li><p>Later-stage valuation heavily relies on financial performance and projections.</p></li></ul><p style="text-align: start">2. <strong>Funding competition:</strong> there is a positive correlation between the number of investors who want to fund a company and the valuation of such a company.</p><p style="text-align: start">3. <strong>Leadership team experience:</strong> because there’s a perceived negative correlation between more experienced entrepreneurs and risk, valuations of companies with more experienced leadership teams will be higher. Note: personal biases will play a role here.</p><p style="text-align: start">4. <strong>Size and trendiness of the market:</strong> Your market size (e.g., TAM, SAM, SOM) and the growing demand of a company’s market will also have a positive correlation with valuation.</p><p style="text-align: start">5. <strong>An investor’s entry point:</strong> Some investors have a valuation investment range. For example, an investor might only invest in companies that are valued at $10M or less.</p><p style="text-align: start">6. <strong>Financials and other numbers:</strong> There is a direct correlation between how well a company’s financials and numbers stack up (against its given industry and competitor benchmarks) with the company’s valuation.</p><p style="text-align: start">7. <strong>Economic climate:</strong> There is a tentative positive correlation between the stock market’s performance and the valuation of a company. That’s to say that if the stock market is performing well, valuations will be higher and vice versa.</p><blockquote><p style="text-align: start">Basically, if many investors perceive a given company to be less of a risk and more of an investment opportunity (aka shows signs of a successful exit) — due to its strong leadership, market size/trendiness, and numbers — the valuation of a company is likely to be higher than lower. It makes sense, no?</p></blockquote><p>Source link: <a target="_blank" rel="noopener noreferrer nofollow noopener noreferrer" href="https://medium.com/greenroom/what-every-early-stage-founder-should-know-about-valuations-225ed2c33c3d" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none">https://medium.com/greenroom/what-every-early-stage-founder-should-know-about-valuations-225ed2c33c3d</a></p><hr><h2 id="" class="group relative whitespace-pre-wrap -ml-2 pl-2 scroll-mt-20 sm:scroll-mt-5"><a href="#" class="absolute top-1 -left-5 opacity-0 border-0 group-hover:opacity-100" aria-hidden="true" tabindex="-1" class="text-gray-850 dark:text-amber-30 hover:dark:text-green-150 hover:text-primary-300 focus:outline-none" target="_blank" rel="noopener noreferrer"><div class="w-6 h-6 text-slate-500 ring-1 ring-slate-900/5 rounded-md shadow-sm flex items-center justify-center hover:ring-slate-900/10 hover:shadow hover:text-slate-700 dark:bg-slate-700 dark:text-slate-300 dark:shadow-none dark:ring-0"><svg class="w-4 h-4" viewBox="0 0 24 24" fill="none" stroke-width="1.5" stroke="currentColor" aria-hidden="true"><path d="M13.19 8.688a4.5 4.5 0 011.242 7.244l-4.5 4.5a4.5 4.5 0 01-6.364-6.364l1.757-1.757m13.35-.622l1.757-1.757a4.5 4.5 0 00-6.364-6.364l-4.5 4.5a4.5 4.5 0 001.242 7.244" stroke="currentColor" stroke-linecap="round" stroke-linejoin="round"></path></svg></div></a></h2>

Collection: Valuations

🎨 Design

💳 Financial services

🫀 Health

💻 IT consulting & outsourcing

📒 Legal & accounting

💠 Other

📣 PR & marketing

🌐 Partner hub

🔍 Recruiting & headhunting

🦾 SaaS services

💬 Translation services

🧳 Travel & accomodation

🧑‍🤝‍🧑 HR services

⏳ Productivity

☁️ Server & cloud solutions

⚙️ Web & app development

Founders refine and validate their business concept, conduct market research, and create an MVP to gather feedback and attract early adopters.

💡 Idea stage

The startup focuses on building the product or service, addressing technical challenges, and seeking early-stage investment.

🐱‍💻 Development stage

The startup experiences increasing customer base and revenue, focusing on scaling operations, optimizing marketing and sales strategies, and establishing product-market fit.

📈 Growth stage

The startup enters a phase of rapid growth, scaling operations across multiple dimensions, seeking additional funding, and aiming for market dominance and increased profitability.

🚀 Scale stage

Collection: Valuations

How to value a startup - 9 methods explained (blog post by Stéphane Nasser)

Sign in to read full article

How to value a startup - 9 methods explained
(blog post by Stéphane Nasser)