In this post, our Managing Partner, Carlos, provides an update and further considerations for founders questioning how an early-stage investor values a startup? If you want to know how to maximize your valuation and drivers behind the boundaries of possible valuations for your company then read on!
In my previous post, I covered how macro and geo contexts, amongst several factors, determine the relativistic value of a company to an investor on exit, and how traditional finance-driven valuations methods (DCF, etc) were inappropriate for early-stage startups even if some of the elements that drive those finance-driven valuation methods were still applicable, such as expected revenues. I also covered how several factors about your company can influence what valuation you might be able to achieve. To kick-off, let’s revisit those points.
The key drivers for maximizing your valuation possibilities are:
- Excellent metrics. As different types of