Valuations are incredibly misunderstood by Founders.

There are surprisingly few sources to help Founders understand where valuations come from or how they are agreed upon by investors.

In this lesson we’ll explore:

• What drives Valuations? It’s about future value, not present value.
• Who set Valuations? They are set by the Founder, but negotiated by the Investor.
• How do I set my Valuation? It’s a combination of your Stage and anticipated Dilution.

The good news is that most startups can get a general idea of their market valuation based on how much they are trying to raise and how much ownership investors tend to take at each round.