Raise Millions by Hustle Fund VC Page 27 How to determine a valuation for your startup A startup valuation is the financial value of a startup’s equity at a given point in time. In other words… how much your startup is worth. Unlike public companies – where the stock is listed on an exchange and fluctuates throughout the day based on trading activity – private startup valuations are agreed upon by the investors and the founder(s) when the startup goes out to fundraise. This valuation is based on a variety of factors: ● How much revenue the business has ● Business experience of the founders ● Competition in the market ● Macro market conditions ● Investor demand The last point on “investor demand” is one you should definitely pay attention to. While the other factors do matter, a startup’s valuation is not actually about how much your company is worth, but about the supply and investor demand of your round. Let me explain. Example #1: Imagine your goal is to raise $200k at a $1M valuation. But you discover that you have a lot of investor demand. In fact, these hustlefund.vc / @hustlefundvc