How to value your early stage start-up
- Determine how much you need to grow to raise the next round of investment. e.g. $100K over 12 months.
- Work out what you will give to an investor? Perhaps 5-20%
- Therefore the pre-money valuation is $500K (20% for $100K) or $2m (5% for $100K)
- How the range is actually determined depends on how the investor values your start up and your ability to grow and deliver.
