username48378645@alien.topB to EntrepreneurEnglish · 10 months ago

How do you calculate valuation?

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How do you calculate valuation?

username48378645@alien.topB to EntrepreneurEnglish · 10 months ago

7

I thought my company’s valuation would be 5 years of my average revenue. But I heard it’s actually 2 years. What’s the right way to know this?

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founderscurve@alien.topB
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10 months ago
5x+ on revenue is typically what you see for growth startups, with high margins. A heuristic indicator would be in VCs invested in it, for everything else 3-5x on profit is what I encountered most.

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