Written by Tom Cannon, Portfolio Manager at Seedrs, sharing his expertise and insight into startup valuation.
Are you looking to get an idea of your business’s valuation?
Startup valuations are a notoriously murky field, no more so than at the earlier stages where there is little track record to help guide you.
For entrepreneurs, calculating a good valuation for one’s business is challenging trade-off between appearing grounded yet ambitious to investors, whilst not underselling yourself and giving up more of your company than is absolutely necessary.
To help you, we’ve created this guide on understanding how to go about looking at an early-stage business valuation. In it, you’ll learn:
- The basic principles and maths behind how entrepreneurs and investors each value businesses.
- How market trends and forces influence valuations.
- The 3 main methods used by Angels and VCs to value startups.
- The dangers of valuing your business to high or low.