How to estimate the value of a newly established company

a lot of entrepreneurs in the choice of joining the project, will be repeated consideration and comparison. How can we know the value of a new company? We only have a clear understanding of where the value, in order to be more assured of investment venture. Let Xiaobian tell you how to measure the value of a new company:


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the valuation is very important for entrepreneurs, because it determines they need to give investors in exchange for equity investment. In the early stages of the company’s value is close to zero, but the valuation is much higher. Why, for example, you are looking for a seed investment of around $100 thousand, in exchange for a 10% stake in your company. This is a typical deal. Well, your pre investment valuation will be $1 million. However, this does not mean that your company is now worth $1 million. You probably won’t be able to sell it. In the early stages of valuation more emphasis on growth potential rather than the present value.

In the early


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concrete will fall in this range on which number 1? This will depend on other similar investors look at how the value of the company. 2 depends on

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