Questions

I want to raise a seed round for my startup. How do I go about setting an appropriate valuation?

As pointed out, there is no good answer based on business logic. What I would do is to ask the lead investor if there is one, what target multiple the want to obtain on their money, a 10 X is low, and when they expect to obtain it an how. The you can ask if the 1% per $25,000 will do that for them.

Avoid any attempt to do it based on projections, even if you have some revenue. The product will probably change so as to invalidate such a "promise".


Answered 9 years ago

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