You valued your startup at $1.9m:
You think you’re worth $3m.
We have an app for that.
Plug in what you think your worth and you get:
This means that for a $3m valuation you either need a plausible argument for the investor for a $1.6m instead of a $1.0m EBITDA:
Or you need a plausible argument for a 7.8 instead of 5.0 EBITDA multiple:
Or 1 instead of 3 milestones between seed and exit:
Or a probability of success per milestones of 93% instead of 80%.
Or an IRR of -5,1% instead of 10,0% (not very likely).
Or an exit after -1,7 instead of 3 years (not very likely either).
Or you play around until you feel you have a plausible combination of assumptions:
That’s how you get a $3m valuation.
Thanks to Hans Westerhof and Chretien Herben.
Venture Value does startup valuations for founders who want to raise money with an investor.