The valuation of my startup is …..
Well I have no idea and so does anyone else in the startup world.
It’s an issue that EVERY founder, angel investor, and VC grapples with, and I say GRAPPLE (in bold and big caps), because no one has ever been able to give me a satisfactory answer!
That’s why I’ve decided to post the question to the world, “How would you value an early stage pre-revenue startup?”
We will also get the crowd to vote for the best answer. Because a valuation model is as good as the number of people using it!
The Prize: US$500 PLUS the pricing model will be named after him/her.
Here are the top 3 most common replies I’ve received and what I think when I hear them.
- Valuation is an art and not a science
What I’m thinking: Well art can be very very expensive. And I don’t want to be dead for my “art” to be valuable.
2. It depends
What I’m thinking: Well just be honest and tell me you have no idea.
And my personal favourite, 3. Pluck out of the air!
I know it’s not hard science but there must be some sort of framework that everyone agrees on.
If you are passionate about startups, help us solve this problem! So founders can focus on building great products and investors can be rightly rewarded.
Accept the challenge at http://startupvaluationchallenge.crowdbam.com
Looking forward to some truly brilliant answers!