Hello everybody. Today, we’re talking about what your seed valuation should be.
Well, there’s a really wide range. In today’s market, I see everything from $3M to $30M valuations labeled as pre-seed and seed.
The factors most investors care about at this stage are: founder backgrounds, traction, market size, tech advantage. Usually it’s best to survey 3–5 friendly investors you know in the space to get a range.
However, my main message is start as low as you’re comfortable and then keep increasing the price. You might raise your 1st $100k at a $3M cap and then raise the cap to $5m for the next to $250k, $8M for the next $500k and so on. If an investor ever challenges you — tell them you increased the round due to overwhelming demand and you promised the team or your other investors that you wouldn’t dilute them further at that valuation.
Alright, thanks a lot for watching and best of luck out there.
