Series A valuations are call options on market size and PMF, not revenue multiples
joecole · x · 2026-08-23
Rex Salisbury argues that Series A valuations have almost nothing to do with "multiples" but are call options on companies just starting to see product-market fit. Valuation depends on perceived end market size, not revenue multiples. Increasing revenue from $1M to $2M without market growth does not automatically double valuation. Series A focuses on market size and demonstrated PMF.
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