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Decoding Startup Valuations

In this episode of TheOnePoint podcast, I talk with Dan Gray (Head of Insights) of Equidam platform on all things startup valuations.

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👋🏼 Hey everyone, welcome to the newsletter. I’m Rohit Yadav, and All Things VC is here to unravel insights from our venture ecosystem


The valuation topic is confusing and sometimes outright stressful for founders.

That’s why I invited Dan Gray, Head of insights of the Equidam platform for this episode of TheOnePoint 🎧

And the confusion is not just for founders. Many investors also don’t have a perfect grip on the topic. Due to their fund strategy setup, the upcoming investors on your captable might be valuation takers and not valuation setters.

The whole practical aspect of the valuations is influenced by a lot of factors, including the supply-demand of capital from investors who may or may not be too focused on this KPI alone to do deals.

So, in a nutshell - Valuations as a topic has its worshipers and non-believers. However, whichever side you are on, it never hurts to understand the nuances.

Dan was the perfect guest as he has 15 years of experience in and around tech startups. He is a regular contributor to Crunchbase and writes about venture capital, startup fundraising, and obviously valuations.

We talked about:

  • (00:00) Episode intro

  • (00:58) Intro: Dan Gray

  • (01:35) Intro: Equidam platform

  • (03:40) Experience as Head of Insights @Equidam

  • (04:53) What’s the vision for the Equidam platform

  • (07:36) Different valuation methodologies

  • (09:24) Scorecard based valuation methodology

  • (11:44) Sample valuation outcome from the Equidam platform

  • (13:14) The question of higher or lower valuations

  • (15:54) How should founders think when VCs allocate low valuation to their startup

  • (20:05) How should founders think when VCs allocate higher valuation to their startup

  • (21:35) Investor’s incentive on giving lower vs higher valuation

  • (22:39) Valuations in the context of larger VC funds

  • (25:19) Price vs valuation

  • (26:34) Startups are art, valuations are science and price is both

  • (28:09) Most common questions from founders regarding valuations

  • (32:33) How venture capital uses or abuses multiples

  • (35:25) Where does multiples-valuation methodology have its place

  • (39:53) Valuation trends in the last 2-4 years

  • (42:51) Starting up: Timing and macro conditions

  • (46:13) Cross-border investment: European founders and U.S. investors

  • (49:08) VC investor and LP insights on valuations

  • (53:35) Valuations in the context of secondary markets

  • (57:32) Dan’s book recommendation: Paper Belt on Fire


If you found this newsletter valuable, please consider sharing it with other investors and founders. “We grow together, better!” As always, feel free to reach out - I’m here to brainstorm and provide support.

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Rohit 👋🏼


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