Startup Valuation - With & Without Revenue

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 😀

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  • Abhishek Rawal
    Abhishek Rawal

    @abhishek-fg9tRh • Aug 6, 2012

    My question is ... how to approach a company & how to attract investors ?
    I know that i need a solid idea to startup my own business .. but how to approach when you are broken ?
    Tell me sir, How to gathered the investors ?

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  • Kaustubh Katdare
    Kaustubh Katdare

    @thebigk • Aug 6, 2012

    Troll_So_HardMy question is ... how to approach a company & how to attract investors ?
    I know that i need a solid idea to startup my own business .. but how to approach when you are broken ?
    Tell me sir, How to gathered the investors ?

    You don't need a 'solid' idea. You just need an idea that aligns with your passions and skills and it can 'solve' a problem for people.

    Contacting investors isn't a big thing. Just getting an investment may be a hell of a task.

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