Valuation = P x S x E

Where Valuation = Problem x Solution x Experience

New York Times quote “V stands for valuation, or the worth of the start-up. P is the problem the business is trying to solve. S stands for the “elegance of the solution” and E the experience of the management team. The maximum value for any of the three is three — meaning the maximum a start-up can be “worth” is 27. The higher the score the better. If “V” is zero, or a small number, presumably the business is doomed.”

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