What does it mean?
A valuation is the money value that founders and an investor agree to put on a company when it raises investment. The investor's share follows from it: if the company is valued at $1 million after the investment and an investor puts in $100,000, they own 10%.
There are two common figures. The pre-money valuation is what the company is worth before the new money comes in; the post-money valuation is its worth after adding it.
How does it work?
Large companies are valued on profits and assets. Early-stage startups have few numbers, so their valuation rests on things like the strength of the team, the size of the market, sales and growth, competitors, and the valuations of similar deals in the same market. In the end, it is the result of a negotiation, not an exact calculation.
Why does it matter?
Too low a valuation means founders give away a large share too early. Too high a valuation may feel like a win, but it makes the next round harder if growth does not justify it. A founder should aim for a fair valuation they can defend, not the highest possible number.
In the Syrian context
According to the Aram Lab and Riyada+ investment report 2025-2026, investors warn against comparing Syrian startups with Gulf valuations, and they prefer a company that solves a clear Syrian problem and has a path to customers outside Syria. Verified deals in the report ranged from $16,000 to $200,000.
Valuation is one of the topics of the Capital track in the EntreStations programme, alongside readiness, the data room and the pitch.
Example
Two founders of a salon booking platform in Damascus want to raise $50,000. They agree with an investor on a pre-money valuation of $200,000, which makes the post-money valuation $250,000 and gives the investor 20% of the company.
Common questions
How do you value a startup that makes no profit?
You look at the team, the market size, sales and growth, and similar deals, then settle the figure through negotiation. There is no single correct formula at an early stage.
What is the difference between pre-money and post-money valuation?
Pre-money is the company's value before the new investment. Post-money is the pre-money valuation plus the amount invested.
Is a high valuation always good for founders?
Not always. It means giving away less of the company now, but it raises expectations and can make the next round harder if the company does not grow enough.