How to maximise your startup valuation?

Building a company that reaches $100M revenue used to take decades. Now the median is 7 years and record-holders do it 5. 

With such crazy growth rates it seems impossible to accurately estimate the future value of a company. 

However, startup founders and investors have to do it. And they do it based on very early results. That’s because startups usually begin raising capital long before there is revenue or much else to show. Yet founders have to somehow establish how much money they want to raise and how much equity they're willing to give away for it. But how can you estimate the value of your company when traditional valuation methods don't yet apply?

The process is tricky and it’s as much art as it is science. If you’ve heard of founders who sold their company for millions and others who sold for ‘next to nothing’, you know what I mean.

In my presentation I’ll show a group of key metrics that investors use to determine a startup's value based on its market potential, the company’s speed of growth, its clients’ behavioral patterns, as well as the company’s gross margins and client acquisition costs.

Once you understand the process and the metrics, you’ll be able to accurately value your startup. Investors already know how to do it. So should the founders.