Though there are "standard seed-stage valuation methods" (Comps, VC, Scorecard, Berkus) valuation at early stage (pre-revenue) is a bit more art than science, a balance between optimism and delusion and between strategy and tactics. Factors include:
- Team - their ability to build a company to execute
- Target market(s) size(s)
- Potential for the startup to dominate, create or disrupt the market for substantial revenue
- Unique Value Proposition, and is it compelling to potential customers
- What is the Go-To-Market strategy
- What are the economics
- A realistic understanding of the competitive landscape
- What is the capital investment required to get to milestones: Proof-Of-Concept, Minimum-Viable-Product, Product-Market-Fit
- What is the technology and does it scale
- What is the intellectual property
- What are the risks
- Exit potential