INFOGRAPHIC: Startup Valuation 101
Startup valuation can seem like a black art. How can a founder figure out how much their startup is worth? How can a VC make informed choices about how and when to invest?The infographic below gives us a great rule of thumb:
- Early Stage: Raise enough for 3 experiments and 6 months runway - raising any more unnecessarily dilutes and raising any less puts you at risk.
- Scaling Stage: Benchmark against competitor pool and calculate your multiplier. At this stage, raising 18 months runway is a sensible goal.
- Exit Stage: Acquihire / Acquisition / IPO? Choosing the right option based on a realistic look at business performance can save time and increase prospects. Time is a critical factor here - when is the right time to exit?
Original post from Tech In Asia: https://www.techinasia.com/talk/how-startup-valuation-works-infographics