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9 Comments:
icedchai said 3 months ago:

Just multiply the latest funding by 4x or 5x. That'll get you close-ish.

e1g said 3 months ago:

This is a useful estimation formula, and I'm not sure why you're getting downvoted.

The reasoning is as follows: institutional investors prioritize ownership % over $. For the first couple financing rounds, they will want 15-25% of the business and will increase the check size until they get that. If they get 25%, post-money valuation of the business is 4x the investment. If they get 20%, post-money = 5x the amount. There are outliers, but "post-money = 4-5x the check size" is a useful heuristic for mid-market deals.

icedchai said 3 months ago:

Thank you! Yes, in my experience, "most investors want 20% in each round" has been a good rule to go by...

return1 said 3 months ago:

Because they are not forced/required to. You can find that data in databases like crunchbase i think

cfarm said 3 months ago:

When they get big enough they do. Depends on what you consider a startup.

naveen99 said 3 months ago:

Yeah, I am just trying to understand the reasoning. Is it the founders or the investors who benefit more from the half hearted secrecy ?

cfarm said 3 months ago:

IMO I don't think anyone benefits from announcing the valuation.

naveen99 said 3 months ago:

Other potential investors would benefit from knowing the valuation, and if they invest then maybe founders and earlier investors benefit, no ?

What’s the benefit from announcing the funding amount ?

cfarm said 3 months ago:

I think funding amount could attract a specific type of talent.