The question of valuation is intimidating for many early-stage startup founders. As a young company with a short history and little to no revenue, there simply isn’t a formula capable of producing a neat round number that objectively represents the value of your business. Valuation, then, becomes the art of making a deal, not the science of building a spreadsheet.

Many factors play into a valuation negotiation with a VC—your business fundamentals, while important, are among the many. The market landscape, the VC’s incentives, and the strength of your network can all factor into the discussion as much, if not more so, than business economics. READ MORE