How is the valuation determined?
Market demand often determines the valuation. Typically, before a company fundraises on Wefunder, at least one professional investor has invested in the company. Professional investors are much more likely to understand the current market value of startups. This valuation shifts with time, depending on the amount of capital chasing startups. Right now, early-stage high-growth startups are often valued at $3 to $20 million for their first financing. Lifestyle businesses are valued at less. Companies that have raised several rounds of financing and are further along are worth far more.