3 ms·
Discuss valuations for seed stage SAAS startup
Where is a good place to discuss valuations for a seed stage SAAS startup with a working product that is just getting the first clients on-board? I had heard $5-6 million, but this is not in the valley.
Also looking for how to award stock to founders pre funding. Thanks in advance.
- selfdestruct 9y agoIt really depends on your market and who your investor targets are. If you're in a hot market and looking to play the VC game, you're probably looking at something more in the $3M-$4M range for a seed round if you're outside the Bay Area and raising from VC's. On the other hand, if you're soliciting angels or micro VC's and don't see yourself going down the VC path, the valuation is likely to be lower in the single digit millions. Stock awards are a contentious subject. My personal preference is vesting RSU's if the valuation is low at the time of the grant. I'm sure other will disagree. When the valuation is higher, the tax implications for both RSU's an options become a problem. IMO options are better for the company long term but worse for the employees, while RSU's are harder on the employee in the short term but better for them in the long run.