How can I calculate my Start-Up valuation to receive a seed capital when I just have only an MVP as a tech company with probably no traction?
I know of two options.
The first is to compare with relevant ventures/startups in your sector, and put a number out based on how you feel you are compared to their founding team at the stage of their funding.
The other is to calculate the total expenses needed for profitability in say within 18 months, let’s call this (Y). Sell your yourself, your team and product to a group of investors for 10-20% slice of (Y). You would get an idea of what people are willing to give you during the process of meeting investors. 100% of whatever the investors are willing to invest is the valuation of your venture.
Mind you, there’s a lot of technicalities to this process itself that i’ve ignored.
Bar revenue and measurable traction, you are essentially a salesperson and whatever you’re able to raise (your valuation) is based on your negotiation and ability to show that the founding team can achieve the growth potential and estimated future profitability of your venture.
You nailed it, can we talk more please firstname.lastname@example.org