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Not sure what you're trying to learn? There is basically no intrinsic rhyme or reason to early-stage valuations. Figure out how much money you need, how much e
by maaku 12y ago
Not sure what you're trying to learn? There is basically no intrinsic rhyme or reason to early-stage valuations. Figure out how much money you need, how much equity you're willing to give up for it, and find an investor that agrees to those terms. That's it.
- api 12y agoYeah, I understand all that. If startups could be objectively and reliably valued at an early stage, there would be no angels or VCs-- banks would just lend to them. :) But... There is a market -- deals close every day. I am curious about whether there's any good data out there that can be used -- either as an entrepreneur or an investor -- to gauge the general reasonableness of a proposal. Is it within the bounds of sanity? Too good, too cheap, etc.? My guess is that this information is guarded to some extent, since it helps people like early stage VCs price deals. It's interesting that the angel.co database doesn't tell you the amount they raised, making the valuation ranges interesting but ultimately not that informative about what the market is paying for early stage startup equity/notes.
- maaku 12y agoNo that's really the point of early-stage investment. There is no metric to go by, except one's own evaluation of the potential of a team's future worth and the cost of acquiring a share. This is necessarily very dependent on circumstances, and data that is not going to be available online.