How much money does your startup cost?

How do you measure the value of a company? Especially, your company, the one you started just a few weeks ago. How do you determine its value? This is the question that will resonate in your brain over and over again when looking for funds for your startup. The following infographic will help you address the valuation of your company from its early stages:

Post 22 -how-startup-valuation-works-infographic

Several factors influence how much money can you ask an investor if you are negotiating a share of the company:

Traction: The most important aspect to show to an investor. The higher the number of users of the platform, more money you can ask.

Reputation: Entrepreneurs with prior exits in general also tend to get higher valuations.

Revenues: Are more important for the business-to-business startups than consumer startups. Revenues make the company easier to value.

Distribution Channel: Even though your product might be in very early stages, you might already have a distribution channel for it.

Hotness of industry. Investors travel in packs. If something is hot, they may pay a premium

If you want to delve deeper on additional tricks to valuate your startup at different stages read the article here for useful tips.

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