Valuation is negotiation, informed by method
At the earliest stage there is little revenue to anchor on, so valuation reflects team, market, traction and competition for the deal as much as any formula.
Common approaches
- Comparables: what similar startups raised at a similar stage
- Scorecard / checklist: adjust a base valuation for team, market, product
- VC method: work back from a target exit and required return
- DCF: rarely meaningful pre-revenue, more useful later
Round size and dilution matter more than the headline number. Optimise for the right partner and ~15–20% dilution, not a vanity valuation.
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