"So if you're an early stage company and you're trying to figure out what your valuation should be, there's a couple things you can look at. One is the competitive landscape. Are there any people in your space that have raised rounds lately? What sized rounds have they raised? Usually, that's a good indicator of what people evaluating specific companies in this space are like. The other thing that's going to play a predominant role is supply and demand. If you have a bunch of VCs or angel investors trying to get in your round and you have several term sheets on the table, it's a great way to leverage deals that you're seeing and get really, really comfortable with. The thing that matters most, really, is that this is your company and you have the decision whether you want to raise money or not. So only settle on something if you're confident on it and it feels really good. " -- Jared Hecht
How do you get rid of the noise around valuation?
Jared is the cofounder of GroupMe. Previously, he was the Business Development Manager at Tumblr where he focused on international expansion and strategic partnerships. Jared received his BA in Political Science from Columbia University in 2009 where he served as the Publisher and Managing Director of Inside New York. He also ran his own marketing and production company and managed several touring bands in between classes.