What is My Company Worth? How Startup Valuations are Determined
How do we determine whether things are fairly valued?
When purchasing a product, we might consider the cost of creating and marketing the product. With art or collectibles, perhaps we compare to similar products. Perhaps we have an emotional or philosophical reason to make a purchase, in which case, price may be less of a consideration. But how do investors think about a startup’s valuation when they are acquiring a minority interest?
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