{"id":6445,"date":"2022-08-03T08:12:05","date_gmt":"2022-08-03T08:12:05","guid":{"rendered":"http:\/\/mekyal.com\/en\/?p=6445"},"modified":"2024-02-07T12:51:53","modified_gmt":"2024-02-07T12:51:53","slug":"article02","status":"publish","type":"post","link":"https:\/\/mekyal.com\/en\/article02\/","title":{"rendered":"START-UP VALUATION TECHNIQUES FOR SEED-STAGE COMPANY"},"content":{"rendered":"[vc_row type=”full_width_background” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” advanced_gradient_angle=”0″ overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none” gradient_type=”default” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/6″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][\/vc_column][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”2\/3″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text]\n

START-UP VALUATION TECHNIQUES FOR SEED-STAGE COMPANY<\/u><\/strong><\/p>\n

Overview:<\/u><\/strong><\/p>\n

Raising funds is an inevitable component of any startup\u2019s journey, and entrepreneurs must go through multiple rounds of capital raising, which are pre-seed, seed, and series rounds, to establish a successful organization.<\/p>\n

When it comes to the seed stage, the timing of getting financing and the exact amount needed are essential. Businesses must first establish the amount of seed funding required before pursuing any of the above-mentioned\u00a0external sources. This is when the seed funding valuation comes into play.<\/p>\n

What Is Startup Valuation?<\/u><\/strong><\/p>\n

In layman\u2019s terms, startup valuation is the process of estimating a company\u2019s worth.\u00a0<\/em><\/strong>During the seed fundraising round, an investor invests money in a business in exchange for a part of the equity in the company. This is why valuation is crucial for entrepreneurs since it helps them determine how much equity to provide to seed investors in return for funding.<\/p>\n

It is also critical for an investor to understand how much company share they will receive in exchange for the money committed during the startup stage. So, in essence, startup valuation can be a deal maker or a deal-breaker.\u00a0Knowing the business\u00a0value and its\u00a0determinants is critical for startup valuation decision-making<\/em><\/strong>.<\/p>\n

Factors Affecting the Valuation For Startups At Seed Stage<\/u><\/strong><\/p>\n

There are several factors that influence the valuation of a company:<\/p>\n