How do you price a round?
Its one of the most often asked questions and yet I've never seen a great answer given. It seems to me that the most important factor in pricing your round isn't your progress or your idea. It seems to come down to two things:
1) How much do you want to raise?
2) Supply and demand of capital willing to invest in your company.
The second is pretty obvious, but what about the first? So the more you want to raise, the more your company is worth? Kind of, actually...but how much money a team gets has to do with a number of factors that reflect things like trust in the team, risk, etc. So instead of pricing that into how much a company is worth, they tend to price it into round size.
To read the full, original article click on this link: - Thisisgoingtobebig.com - A framework to think about pricing seed, angel, and venture capital rounds
