What Is The Right Valuation? 4 Core Principles For Entrepreneurs

Deciding on the right valuation is both an art and a science (and some would say black magic). Common sense dictates that something’s value is whatever someone else is willing to pay. While that has a fair bit of truth, I would argue that something’s value is what it truly contributes. In other words, there are inherent principles in deciding what is the right valuation — which this post will illuminate. 1) Amount Raised — Valuation as a function of the raise is a very common shorthand especially among VCs. In mature ecosystems, seed and A are dilutions of 20-30%,…...