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How Investors Think About Valuation of Pre-Revenue Startups

SoCal CTO

They might have some seed money and are thinking or raising a Series A based on success of an early release (MVP). Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. Think about how you can prove your business model with an MVP. is a requirement.

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How to Start a Startup

www.paulgraham.com

Microsofts originalplan was to make money selling programming languages, of all things.Their current business model didnt occur to them until IBM droppedit in their lap five years later. Because so little money is involved, raising seedcapital is comparatively easy-- at least in the sense of getting aquick yes or no.

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