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Why don't startups list valuations along with funding amounts to the press?
4 points by naveen99 11 days ago | hide | past | web | favorite | 9 comments

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

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.

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

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

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

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

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

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 ?

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

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