Valuation Formula:

Given a 2 to 4 mil range for the pre-A stage, a 5-point company would be valued at 4 million and a 0-point company at 2 million. For Start-ups 1 and 2, we will use a range of 2.5 to 4 mil instead, given their traction with other investors. Note that you should adjust your range according to the funding environment for the relevant stage and sector.

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Start-up Valuation = [ Multiplier  Range of Valuation ] + Min. Valuation for that stage
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Start-up 1 Valuation: 4.25/5 x 1.5mil +2 mil =3.3 mil
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Start-up 2 Valuation: 2.25/5 x 1.5 mil +2 mil= 2.7 mil
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Keep in mind that this means a “0” point in any category does not mean the start-up has nothing to show for; it indicates that the team has barely made it into the stage.

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