[gettinstarted]

Practically speaking, the market sets the rate. How desirable you are compared to other deals, determines your valuation above that rate.

Let's say your company has typical proof-of-concept traction. Depending on the specific space that could be 10-50k uniques per month.

For example, 500 startups typically makes a 50k investment at a $1 million dollar valuation for companies they incubate. Syndicated angel / early stage vc rounds are usually (lately) in the $3-5 million post range. However, this is more a function of the amount raised and the % each investor needs to make their investment model work.

I've also noticed that revenue for most early-stage companies looking to raise funds, when revenue does exist, is usually a milestone (proves the business model). A company that has yet to scratch the surface in their market, which is most early-stage, doesn't get their valuations off multiples. A company w/ rev of 5k per month that gets a $3 mil pre-money "technically" has a 50x valuation (annualized) or let's say 25x with some decent growth projections. But, the revenue doesn't lead the pricing, it's a just truism via basic financial formula.