10 Rules of Thumb for Start-up Investment Valuation

Explaining valuation with hypothetical example.

by Marty Zwilling
Founder & CEO, Startup Professionals, Inc.Follow 263

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Description
“What is your company’s valuation?” Many entrepreneurs stumble when asked this question, losing the deal or most of their ownership, by having no answer, saying “make me an offer,” or quoting an exorbitant number.

So to facilitate this for entrepeneurs out there, I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points.

Hence, the attached rules of thumb are what I'd recommend to every startup.

- Marty Zwilling

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