In my experience most seed stage startups raising money do what I call "reverse valuations". They figure 2 things: - how much money they want to raise. Say $50

In my experience most seed stage startups raising money do what I call "reverse valuations". They figure 2 things: - how much money they want to raise. Say $500k. - how much equity they're prepared to give up. Say 10%. --> and there you have it. $5m valuation!