#finance

Thread

Anthony Guynes January 19, 2025 at 05:44 AM

How do yall value your business during the first year? My thoughts, startup accelerators typically value pre-revenue startups at ~2M. If we have 100k revenue in 8 months, traction, product market fit, ready to scale, does a post money valuation of 2M sound reasonable for a friends and family round?

Shin Takeda January 20, 2025 at 04:18 PM

It also depends on a bunch of other factors - EBIDTA, MoM growth, margins, and many more… maybe checking out something like “https://chatgpt.com/g/g-nqTwTLj8G-valuationgpt” can help…

Anthony Guynes January 21, 2025 at 04:48 AM

Thanks!

Anubhav Narula January 21, 2025 at 03:37 PM

It sounds like you have more than a pre-revenue idea and that could justify raising at a slightly higher valuation than pre-revenue startups in an accelerator.

Nevertheless, at this stage there are so many subjective factors that can sway your valuation that my advice would be to think more about how much money you need to get you to your Seed round.

Then aim to not give up more than 10% of your company at this stage (ideally 7-8%). eg if you need 300k then you would value at a pre-money of ~3mm.

I was sitting with my CFO / COO who helped me answer this