Sit down with any entrepreneur or investor in the world and the topic of valuation is sure to pop up in the first five minutes. And who can blame them? It’s a lightning rod topic that can make or break a startup, regardless of which tech hub you call home.
According to 2010-2014 data on AngelList, the average angel valuation for Silicon Valley tech startups clocks in at an astonishing $4.7 million – more than 10% higher than the average valuation of N.Y., Boston or Seattle-based startups. When you go overseas, the gap becomes even more pronounced. Perhaps most surprising is that Israel is the second largest startup ecosystem in the world, generating an estimated average seed valuation of $1.5-$2.5 million based on my research and conversations with some of the most active angels in the ecosystem.