The valuation is whatever you and an investor mutually agree on.<p>If you're "fundable" (targeting a large market, growth is accelerating at a rate which looks like it will take you stratospheric, team "looks like winners", in Silicon Valley or NYC, strong social proof from other investors, etc) then in the current environment at least some investors might agree on fairly big numbers. If many of these things are not the case, then it is unlikely investors, if you find them, will agree on valuations that would be obtainable by "fundable" startups.<p>There is no universal formula for valuing businesses. If there were, markets would be a lot less interesting. (The wonderful thing about the standard formulas they teach in B-school is there are so many to choose from.)<p>There are also <i>strong</i> regional components to this question. e.g. In Ogaki, a software business with an enterprise value of $100,000 is newsworthy enough to warrant coverage in the paper on that fact alone. In the Valley, two kids with a gleam in their eye are assigned a notional value of $100,000 for an idea that all parties do not necessarily expect to be the idea they are working on four weeks from now.