The value of [ a startup at the seed funding stage ] would be almost zero? 

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I have found some early-stage founders are not precisely aware of how investors determine the valuation of a startup. While I don't deny the above statement, startup valuations take the potential and growth of a business into consideration.

Startup valuation is the process of determining the value of a startup business. A few factors that contribute to determining this are:

📌 Traction: If you have a product that has the potential to see a rise in demand, it will interest the investors.  

📌 Reputation: Are you seen as credible in the industry? A positive image in your network can do wonders among the investor’s circle.

📌 Prototype: Watching your product in action makes it easier for investors to gauge its value.

📌 Pre-valuation revenue: Unless you have any pre-sales bookings or revenue it can turn the investors away.

📌 Industry: In India, the most funded industries are FinTech, EdTech, SaaS and FoodTech. Your industry 

Although it may be thrilling to place a high value on your firm, keep in mind that you will also need to live up to the investors' expectations.

Avoid over-optimization instead, choose a valuation that enables you to reach your target at an acceptable level of dilution.

What are your thoughts?