What a valuation means

4 cards · about a minute · 23 October 2026

  1. 1 of 4
    $10MVALUATION

    A valuation is what investors agree your company is worth today.

  2. 2 of 4

    $2M for 10%

    Example deal

    That values the whole company at $20 million.

  3. 3 of 4
    100%Founders65%Investors20%Team15%

    A higher valuation means you give away less of your company.

  4. 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.

More in 60 seconds

A new 60-second explainer every weekday.

Join Younifyd, the network for founders and student founders: daily explainers, a weekly comic, and people to build with.

Join now
What a valuation means Explained in 60 seconds · Younifyd