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Explained in plain English

How do startups get valued?

Startups like Callosum are valued based on their potential for future growth, not current profits, as they often have none. Investors look at market size, team experience, and unique technology. Early valuations are often a negotiation, with investors like Atomico and Plural assessing how much equity they get for their investment, hoping for a big return if the company succeeds.

Stories that explain this

UK startup Callosum raises $100 million for AI tech

Questions this opens up

What is pre-money valuation? How do investors make money? What is a unicorn company?

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