How to determine startup valuation?

(Andrew Chen) #1

Continuing the discussion from Ask me anything!:

Here’s a great article on setting valuation:

For what it’s worth, most startup valuations (pre-revenue) are just made up. There are some comps but for the most part, the above article gives some stats.

The other helpful tool is here:

Take a look and let me know what you think?

(Stephen Willis) #2

The only way to forecast web traffic is by having a site up that explains the product or just a front with an option for the prospect to subscribe. Then you can measure that site with google analytics and see how many people are visiting your site pre-launch vs the number of prospects subscribing. Google will also tell you everything about those prospects visiting such as where they are from, how long they stayed on each page, etc. If you do email campaigns with MailChimp or Mailerlite Google can tell you who clicked on what link. Also give those people a google forms survey and ask them if they would use your product and keep in contact with those people.

The Google tools are really amazing:)