This is regarding crowdfunding, is there any relation between the pre-money valuation and the share price?
This may be a stupid question but I’m looking at a startup on a crowdfunding website and they seem to have the higher share price among all other opportunities yet they have the smallest valuation.
Let’s say they have pre-money valuation of 1.8 Million, equity 15%, share price of £11, their target was £200.000 but they went over by around 150% of that target already.
My questions are, how come the share price is £11? In the same platform I can see other startups with much bigger valuations but smaller share prices.
I just assumed that in early crowdfunding rounds the share prices for these startups would be low (under £2 even).
Can someone explain how are the share prices calculated for startups or whether the founders can just put an arbitrary share price?
Also will the share price be likely to increase in future fund raisings?
Many thanks in advance.