What’s the most typical bump in valuation from a seed funding to a Series A round?

If everything goes correctly, the most typical bump in valuation is about 2X from seed to series A rounds. But, this isn’t a complete answer because the actual valuation will depend on too many factors to go into now. You can see some interesting data concerning median valuations at various stages of growth here.

Most importantly, you should remember that a “typical” bump of 2X really has no bearing on what your valuation bump will be because the range is very wide. In other words, there is no standard formula to calculate what your bump in valuation will be based on historic trends, each valuation is done on a case-by-case basis.

So you should evaluate your company on your own and know what you think it is worth before trying to make any deals. This way you will be able to determine the fairness of any potential offer. Investors will also evaluate your company and come up with their own valuation so it is important to know what you think your company is worth.

You may need to seek the help of an attorney at this point to help you with your valuation or with drawing up the terms of any fundraising deal. At LawTrades, our attorneys have experience with and have helped others through the valuation and fundraising process. You should give us a visit if you are looking for an experienced attorney who has represented numerous startups during a raise!

Legal is hard. Let’s tackle it together.

Speak to one of our Legal Pros and discover how we can help.

Let's Talk


There is no comment on this post. Be the first one.

Leave a comment