Mark, how to you put valuation to a company during the seed round, when there is no enough sales data to justify any valuation?

The short story is that valuation is determined most often by the investors. The longer answer is that valuation is a function of many variables:

opportunity size
team
track record
team
vision
team
momentum
demand for your deal (from other investors)

It’s all about you and your track record and your team. If you have a good story there, valuations will be higher. If you’re a 1st timer, you can still raise, but at lower valuations.

Seed rounds in my experience are valued in a range from sub $1M to $2M max. Some companies have done $3M, but that is rare outside of the Valley.

You also need to look at how much you want to raise. Investors usually look to own (collectively) 20 – 30% after a round. So, that can give you a valuation range as well.

Founders who are talking

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