What is my valuation? 2.0

The #1 question when you raise money.

Most investors use the following logic to get to your valuation:

what-is-my-valuation-20

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.

Joachim Blazer is founder at Venture Value. Contact him at joachim@venturevalue.com.

Venture Value does startup valuations for founders who want to raise money with an investor.