What a valuation means
4 cards · about a minute · 23 October 2026
- 1 of 4
A valuation is what investors agree your company is worth today.
- 2 of 4
$2M for 10%
Example deal
That values the whole company at $20 million.
- 3 of 4
A higher valuation means you give away less of your company.
- 4 of 4
It's a price, not a promise: what matters is the business you build.
Test yourself
An investor pays $2M for 10% of your startup. What's it valued at?
- $2M
- $20M
- $200M
Show the answer
$20M. If 10% costs $2M, the whole company is worth 10 times that.
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