One of the most frequently asked questions at any startup event or investor panel is, “How does an investor value a startup? Interesting perspective ” The unfortunate answer is: it depends. Startup valuation, as frustrating as this may be for anyone looking for a definitive answer, is in fact a relative science and not an exact one. The biggest determinant of your startup’s value are the market forces of the industry and sector in which it plays, which include the balance (or imbalance) between demand and supply of money, the timeliness and size of recent exits, the willingness for an investor to pay a premium to get into a deal, and the level of desperation of the entrepreneur looking for money. This article was written on YourStory.in by Taxmantra.com – Click here to read the full article.