startup valuation milestones are based on how well you can communicate why/how you will win to the next set of investors, what your next set of risks are and ho

startup valuation milestones are based on how well you can communicate why/how you will win to the next set of investors, what your next set of risks are and how a few more data points remove them and extrapolate to an inevitable future business. present cash flows don’t matter, only future cash flows do. we can only invest in what we understand, so more clarity = more prospective investors = more competition for your round. traction numbers are super helpful to communicate that certain risks are cleared but are not necessary early if your story of how/why you will win quickly is crystal clear without them. this applies from concept stage all the way to public cos like Tesla.