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Hello, >We're at a 8 digit dollar valuation here after just 2 years of hard work and >Zero financing rounds Are a contradiction. Valuation isn't something y
by shin_lao 10y ago
Hello,
>We're at a 8 digit dollar valuation here after just 2 years of hard work
and
>Zero financing rounds
Are a contradiction. Valuation isn't something you come up with your executive team or your accountant, it's the number that is deduced from an investmenet or an acquisition.
Also, valuation is by no way a measure a success, the real measure of success for a company is the amount of profit.
- coryl 10y agoThere's no rule to how to calculate valuation. You can take your profit numbers and run them against a multiplier based on industry. Ex. using an average of the profit to valuation ratio of the next 3 competitors. That would be a generally fair assessment of valuation, and shows how one can calculate valuation without direct investment by an outside party.
- Scarblac 10y agoBut they aren't profitable yet. How does that work with negatives?