Startup Valuation Drivers over Time

Today’s TechCrunch post Why Startups Should Raise Money at the Top End of Normal has a great segment in it talking about the startup valuation drivers over time. Every entrepreneur should study and understand these drivers:

• Product Risk – will the product work? how long will it take it to build?
• Market Risk – will the market adopt it? will they love it?
• Growth / Scale Risk – will the business scale? can the management team execute?
• Monetization / Competition Risk – are the margins sustainable? what are the barriers?

At each phase in the process the startup’s valuation increases substantially. Think through these when considering raising money and the potential valuation.

What else? What do you think of these startup valuation drivers?