Why don't startups list valuations along with funding amounts to the press? - naveen99
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icedchai
Just multiply the latest funding by 4x or 5x. That'll get you close-ish.

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e1g
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.

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

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return1
Because they are not forced/required to. You can find that data in databases
like crunchbase i think

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

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naveen99
Yeah, I am just trying to understand the reasoning. Is it the founders or the
investors who benefit more from the half hearted secrecy ?

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

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naveen99
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 ?

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

