Questions

It is a disruptive and niche startup with an initial market of 4.5M. Scalable vertically and horizontally. Top category, such as food and technology. But without traction.

That will be absolutely subjective.

You are going to be dealing with angel investors at this stage, so valuation will be highly dependent on how personally interested is the potential investor on what you are doing and how crazy are your expectations about what you are doing.

I say crazy, not in a pejorative way, but realistically most entrepreneurs tend to underestimate the challenges ahead of them and overestimate the potential for growth of what they are building (at least in the short/mid term).

If you are able to find an angel investor who is extremely excited for the field in which your startup will operate, and you have a more or less sound product and go to market strategy, then you will get a better valuation. This is the type of seed investor that you need to look for.

Also, don't get more money than what you absolutely need for the next 6 month. You will be in an infinitely better position to negotiate once you have traction. Traction trumps everything.

Cheers,

Pere


Answered 6 years ago

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