How to increase your startup’s valuation? How to effectively demonstrate traction to investors?
In this video, Molly Otter, VP, Lighter Capital, and David Ehrenberg, Founder and CEO of Early Growth Financial Services, tells about the steps to increase your startup valuation and how to identify the metrics that matter for your business. For increasing the valuation, a startup should track their team’s record; find ways to demonstrate and articulate traction; create and hit key milestones (like product release, gaining customer traction, reaching break-even point, or hiring key talent); be a good negotiator and before raising money, a business should see their market space.
“If you see your market space getting hot and you want to raise VC money, you need to strike while the iron is hot,” explains Otter. “Take advantage of it, because the valuation you see right now may not be there in six months.” Check out this video to know a strategic milestone financing approach for maximizing your company’s valuation in the eyes of investors.