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How do I put a valuation to my startup?
I have an idea, when I meet venture capitals, they told me my startup valuation is too high. How do I put a valuation to my startup?
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1 Response
COO @ BEAMSTART
If you are talking about seed stage startups & earlier,
Valuation is approximately the Costs of a Competitor to replicate you X PE Ratio in your Industry.
Valuation:
- Cost to hire a team / technology to replicate your product.
- Cost to acquire your current usersbase
- Brand value / News value / Exposure value
- Total revenue generated
- Partners value / contracts value / mentors value
- Free will / in-kind costs (those who worked for free)
Take that sum, multiply with X PE Ratio in your industry = Your Valuation
Your have to know your industry & numbers well in order to raise funds.
