Categories: Business

How To Determine The Valuation Of A Startup Company [Infographic]

If you are a partner in a startup company, you’ve probably thought about what the dollar value of all your hard work is. It can be tough to know how to calculate the valuation of a startup, especially when it’s brand new. If your company is at a point in its evolution where you are considering investors, you will have to determine the value of it before serious investors will be willing to part with their cash. You have a few options for how to calculate the valuation of your company.

Most startup company entrepreneurs tend to think their company is worth more than it is. It’s understandable that they would think that since they are the ones with the long-term vision, and they know the true potential. When you want to figure out the value of your company, you can either hire someone to determine it for you, or you can do it yourself.

If you decide to figure out the value yourself, this infographic called How Startup Valuation Works by Funders and Founders is a great place to begin. If you are a startup company that is a website accumulating users, the faster you get the users, the more they add to the value of the company.

Anna Vital at Funders and Founders wrote an excellent post to accompany this infographic, which you can read by clicking on the link above. According to Anna, even if you don’t have a lot to show as far as traction goes, if you can accumulate 100,000 users in the first 6-8 months, you will have a good chance of raising a million dollars. Your company does not necessarily need a high valuation to attract investors.

It is fascinating to dig deep into what goes into the valuation of a startup, and to come up with a dollar value to place on it. After that, you can use that number to determine what percentage should be given to investors in exchange for their cash.

How To Determine The Valuation Of A Startup Company

(Click Infographic To Enlarge)

Diana Adams

Diana has a passion for blogging. You can usually find Diana working in her home office in Atlanta or sitting in the corner of a downtown Starbucks somewhere with her mobile devices in one hand and a Grande Caramel Macchiato in the other. She loves Star Wars, hot chicken wings, and nice people.

Recent Posts

Forex vs Stock Trading: Which One Is Right For You?

Choosing between forex and stock trading can often be a difficult decision for most investors…

3 days ago

The Evolution Of The Definition Of Edge Computing

Edge computing is a term in the tech world that not everyone has fully grasped…

3 days ago

Streamlining Business Operations To Maximize Efficiency

The modern business environment is insanely competitive. The minute that one company finds success, there…

3 days ago

5 Awe-Inspiring Tips For Hosting An Epic Gaming Night Party

Hosting an exciting game night party is the perfect way to unite your friends and…

4 days ago

How Do Automated Control Systems Improve Manufacturing Processes?

Staying competitive often hinges on the efficiency and adaptability of production processes. As industries seek…

5 days ago

Empowering Beauty Through Fitness: The Impact Of Semaglutide On Self-Care And Weight Loss

While combining fitness and weight loss is about getting a certain look, it’s also about…

5 days ago