The #1 question when you raise money.
Most investors use the following logic to get to your valuation:
What will the value of your startup be at the time that the investor wants to sell his shares? Assume a $64.4m exit value in 5 years.
How many times does the investor wants his money returned? Assume a 64.4x money multiple (MM) for your startup.
A $64.4m exit value and a 64.4x money multiple for your startup results in a $1.0m post-money valuation for your startup. Easy!
Thanks to Hans Westerhof and Chretien Herben.
Venture Value does startup valuations for founders who want to raise money with an investor.