Valuation: Step up Valuation Method

Published: Feb. 6, 2020, 2:48 a.m.

In raising funding, valuation is a key number the CEO and investor must come to agree with.\xa0 As a startup you must determine your target valuation.\xa0 There are several methods. One method is called Step up Valuation It uses ten factors. Each factor adds $250K to the valuation To calculate your total pre-money valuation add $ 250,000 for each: - Total market size over $500M - Business model scales well - Founders have significant experience - More than 1 founder committed full-time - MVP developed, customer development underway - Business model validated by paying customers - Significant industry partnerships signed - Execution roadmap developed and being achieved - IP issued or technology protected - Competitive environment favorable You may give partial credit for items that have some progress made. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today!