What Is The Right Valuation? 4 Core Principles For Entrepreneurs

2 min read

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%,…...

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Amit Garg I have been in Silicon Valley for 20 years -- at Samsung NEXT Ventures, running my own startup (as of May 2019 a series D that has raised $120M and valued at $450M), at Norwest Ventures, and doing product and analytics at Google. My academic training is BS in computer science and MS in biomedical informatics, both from Stanford, and MBA from Harvard. I speak natively 3 languages, live carbon-neutral, am a 70.3 Ironman finisher, and have built a hospital in rural India serving 100,000 people.