How to Determine the Value of Your Pre-Revenue Startup Here are the formulas and turns of phrase the experts use to determine what your work is worth.
This story appears in the January 2015 issue of Entrepreneur. Subscribe »
Good news: Despite the perception that we in the VC world employ armies of analysts working behind the scenes and prepping us to beat down the valuation expectations of poorly prepared entrepreneurs, nothing could be further from the truth.
Bad news: Much like trading baseball cards, there is no science to pre-revenue valuations. It all comes down to a negotiation. However, there are some basic guidelines for founders that can help both sides come up with a figure that works for everyone.
1. Understand valuation terms.
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