Startup Valuation - With & Without Revenue
@thebigk
•
Oct 24, 2024
Oct 24, 2024
969
Startups need money and raising money can be a very big challenge for most of the startups. I stumbled upon following video that shows how to calculate the overall valuation of your company if you have revenue and when you're still working on prototypes.
When you approach an early stage investor, it might help to figure out your own company valuation beforehand. Typically it's going to be about 10 - 20x your earnings. It would be about 3 - 5x your company's annual revenues.
But for a company with no revenues; early stage investors may ask for about 40 - 60 % stake in the company. The investors will typically value your company based on what their time is worth 😀
When you approach an early stage investor, it might help to figure out your own company valuation beforehand. Typically it's going to be about 10 - 20x your earnings. It would be about 3 - 5x your company's annual revenues.
But for a company with no revenues; early stage investors may ask for about 40 - 60 % stake in the company. The investors will typically value your company based on what their time is worth 😀
