As many people who took some years in this crazy but exciting world of startups, one of the questions most often asked is, What value my company? I’ve resisted writing about it, as there are large items on the subject and it is complex to tell … but I think I can at least give my point of view.

It is quite easy and there are many references to evaluate startups in later stages, when they are growing, but billed … etc and seed stage / seed? How do you value a company by a financial analysis that no invoice or if it does not in large numbers, which has a mature product and begins to follow the path of growth but still has not consolidated metrics?

Many believe that a startup seed phase is 0, since it has not yet proven its worth in the market … while others say it’s worth a lot of its potential. And indeed both views are correct … but with caveats.

The reality is that they usually end startups are undervalued (not very common) or super-valued (most common) … but that any approach is colored by one thing: the absolute uncertainty of the business.Continue reading →