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Growth in Valuation Since the Previous Raise

What is Growth in Valuation Since the Previous Raise?

Growth in Valuation Since the Previous Raise measures how much a company’s value has grown since the previous round of capital funding.

How to calculate Growth in Valuation Since the Previous Raise

ƒ Sum(Valuation Since Previous Raise) / Sum(Valuation Before Previous Raise) - 1

Example

Say a company was valued at $20M at the time of their series A funding. Three years later, the company is valued at $50M. The Growth in Valuation since the previous round of funding is therefore 150%.

More about this metric

In the most straight-forward scenario, tracking how your company’s valuation has grown since the previous raise can help you measure the direct benefit of funding on your company’s worth. However, you can also use this metric to track your capital efficiency, along with metrics such as the Burn Multiple and Bessemer Efficiency Score. These metrics are useful when pitching to potential investors for your next round of funding.

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