Valuation of early stage, pre-revenue, high potential companies is very tricky. It’s also mysterious for many entrepreneurs, as well as for those well-versed with classic MBA techniques for valuing much larger, later stage companies.
This video provides insight into the valuation techniques used by US angel investors and venture capitalists. After seeing the video you will understand the types of factors that investors consider in placing a value on your startup.
The Slideshare presentation referenced at about the 8 minute mark is here if you want to learn more.