“We’re raising at a ₹80 crore valuation.”
Sounds impressive, right? But how often do founders pause to ask: Where is that number coming from?
Early-stage valuations are one of the most misunderstood (and misused) concepts in the startup world. At Bridgehouse, we’ve seen the full spectrum—from conservative founders undervaluing their hard work, to overconfident decks chasing sky-high numbers without backing.
So let’s bust a few myths and ground the conversation in reality.
Myth #1: Valuation = What I think my startup is worth
Reality: Valuation is not based on your future revenue dream or how much you think your product will disrupt the market. It’s what a willing investor is ready to pay today, based on your current traction, team strength, market potential, and sometimes—just the momentum of your narrative.
Myth #2: Higher valuation is always better
Reality: Chasing a high valuation too early can create long-term complications. If you don’t grow fast enough to justify it, your next round could become a down round. That means lower valuation than before, significant dilution, unhappy existing investors, and potentially a difficult conversation with the next set of VCs.
A fair valuation keeps your cap table clean, relationships healthy, and expectations real.
Myth #3: All money is equal
Reality: Rs. 1 crore from a passive angel ≠ Rs. 1 crore from a strategic investor who opens doors, mentors your team, or helps you scale. Smart capital comes with value beyond money—and often, those investors help you hit the next milestone faster, increasing your valuation more organically.
So… How should valuation be determined?
At Bridgehouse Solutions, our approach to startup valuation is structured yet founder-sensitive. We consider:
- Stage of your business – idea, MVP, product-market fit, revenue traction
- Comparable market transactions – who else raised in your space, and how
- Sector trends and investor sentiment
- Founding team profile & strategic edge
- Early contracts, LOIs, IPs, or defensible moat
- FEMA & regulatory angles – especially in cases involving foreign investment
We also assist founders with cap table planning, so you don’t give away too much too soon—or end up in complex waterfall structures later.
Bridgehouse POV:
Your startup’s valuation isn’t just a number – it’s a strategic tool. It influences how much equity you part with, how investors perceive your company, and how you position yourself for the next round.
So whether you’re navigating a SAFE, a convertible note, or a priced equity round – get expert help early. Because fixing valuation mistakes later? That’s far more expensive than getting it right the first time.
At Bridgehouse Solutions, we’ve advised on 500+ startup valuations, including several exceeding $300 million. Our team works closely with founders, family offices, angels, and VCs to build fair, defensible, and growth-ready valuations.
Need help with your startup’s valuation?
Click the ‘Get in Touch’ button or email/call us directly – we’re just a conversation away.
