How to calclate valuation of your startup for funding

Ever wondered how much your company is worth? In this episode of eLagaan Whiteboard Friday, the eLagaan (http://elagaan.com ) team discusses how to valuate a company, when starting a startup, raising their venture fund, exiting the company. Some of the formulas to use based on net profit or revenue. What happens when you have no revenue or running in a loss. What if the entrepreneur does not have a clear understanding of how much revenue the startup can have, how do you valuate a company then? It may be surprising to know that most of the time the valuation of a company can be dumbed down to a very simple calculation.