Why most startup valuations are misleading and how to assess true market potential

When I first started working with early-stage startups, I was fascinated by how easily multi-million (sometimes even billion-dollar) valuations were thrown around. Pitch decks boasted pre-revenue businesses valued in the tens of millions, often with little more than a minimum viable product (MVP) and a bold market projection. Over time—and after analyzing countless rounds of funding, cap tables, and revenue models—I realized a hard truth:...