This video demystifies early-stage startup valuations, explaining that pre-seed investors primarily focus on securing a standard 15% to 20% equity rather than calculating arbitrary company values. Using a helpful "bricks" analogy, it illustrates how creating new shares for investors dilutes founders' ownership. It covers pre-money versus post-money valuation math, the necessity of employee stock option pools, and how raising more capital inherently increases your startup's valuation.
How to Value your Startup (and keep your Equity)
Posted on 02/18/2026

