Next round valuation


Explaination: Next Round Valuation refers to the valuation of the Start-ups on the subsequent round of funding.

How it applies to Startup/Investor and its imoact: In case the subsequent round (Series A Round) of funding happens within a short span of time say around 6 months, then the valuation of the Company in the preceding round (Angel Round) will be the precedent for the valuation of the Company in such subsequent round. In simple words, Angel Round Valuation is taken as a base for determining Series A Round Valuation.

In an event, the next round happens after a substantial gap of time, say after an year and a half, there will be a fresh valuation depending upon the industry or the sector in which the Start-up is working and the business prospect of the Start-up as well as the revenues, business already done.

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