Valuation: how to sustain the value of your startup throughout the investment journey

Defining the aluation is a challenge that every entrepreneur faces when looking for investments. This definition should take into account the investment journey, not the snapshot.

what is valuation

Value creation journey: the first step in negotiating your valuation at every step

Valuation definition for early-stage startups

scorecard

Transparency is the name of the game

Until when must founders guarantee more than 50% participation?

Early-stage investors are long-term partners

Founders and Co-founders

where to look for investors

Best practices to support your valuation

  • Build your investment rounds journey. It will be important to define how many rounds you will need to reach your goal.
  • Don’t overdo the valuation . If the valuation of the angel round is overstated, future rounds could suffer. As we said, the important thing is not to maximize the valuation of the round, but to make a consistent journey.
  • Form your Justice League. Coordinate with different players and form a versatile group of investors. It is important to seek investors who are aligned with the need for your journey.
  • Get good legal support. It is important to pay attention to the clauses and be in alignment with investors, so that, in the future, no party is harmed. Entrepreneur and investor need to talk and be transparent with each other.
  • Find your big difference. It is important that your innovation is not “more of the same”. Impressively showing how your business stands out in the market will have a positive impact on investor assessment.
  • Balance is needed. The entrepreneur needs to take into account the investor’s side as well, having a view of the profitability generated after the investment, since the multiplication of capital is still the main objective sought by investors.
  • Do not give up! If you got “no” from a fund, work on improvement points based on the feedback received. The “no” might just represent that you weren’t ready at that particular moment. Investors: the feedback culture is important for the evolution of entrepreneurs.
  • Know , above all, where you have the potential to go. Not every startup needs to reach a Series F round , for example. More money requires more robustness, more innovation and more performance.

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