I would guess the valuations are based on the expected targeted size of the market and defensible market position. Without a reason why your current growth wil

I would guess the valuations are based on the expected targeted size of the market and defensible market position. Without a reason why your current growth will accelerate, it's only reasonable why a valuation would be done on a cashflow/profitability basis. You also have to remember that you got to choose your business strategy to this point, you presumably can't be removed from your own company, and your ownership is worth something. There is always an exit for a well-run business, but it's probably not going to be through a VC funded growth-then-exit unless they can see a way to 10x your existing business at a minimum.