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You are not clueless. It's just nearly impossible to draw an actionable line in the sand where on one side your valuation is sane and on the other it isn't. Yo
by stanleydrew 11y ago
You are not clueless. It's just nearly impossible to draw an actionable line in the sand where on one side your valuation is sane and on the other it isn't.
You certainly can't do that in any kind of general sense. Every startup is by definition unique. And there's almost always a way to justify a higher or lower valuation for any given company.
- api 11y agoOh sure, it's a judgement call. I would say as a founder that it's best to seek a high but not insane valuation, and of course the definition thereof depends on multiple factors: what I think a reasonable growth estimate is (while not under the influence of drugs), what the market is currently paying for capital (average, not outliers), etc. If every living multicellular organism on Earth would have to create an account on your service for it to be worth X, X is probably insane. If you have no meaningful revenue, then in most cases a valuation more than one standard deviation among the mean for your sector and maturity is probably nutty.