
Discuss valuations for seed stage SAAS startup - toben88
Where is a good place to discuss valuations for a seed stage SAAS startup with a working product that is just getting the first clients on-board? I had heard $5-6 million, but this is not in the valley. 
Also looking for how to award stock to founders pre funding. Thanks in advance.
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selfdestruct
It really depends on your market and who your investor targets are. If you're
in a hot market and looking to play the VC game, you're probably looking at
something more in the $3M-$4M range for a seed round if you're outside the Bay
Area and raising from VC's. On the other hand, if you're soliciting angels or
micro VC's and don't see yourself going down the VC path, the valuation is
likely to be lower in the single digit millions.

Stock awards are a contentious subject. My personal preference is vesting
RSU's if the valuation is low at the time of the grant. I'm sure other will
disagree. When the valuation is higher, the tax implications for both RSU's an
options become a problem. IMO options are better for the company long term but
worse for the employees, while RSU's are harder on the employee in the short
term but better for them in the long run.

