as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
how are investment funding valued when invested in a company before it goes public?
user
this is a question of how does someone value a business.   typically, it is some function of how much the company owns, how much the company owes, how risky is the company's business, and how much the company makes in profit. for example if a company (or investment) make $100/year, every year no matter what, how much would you pay for that?   if you pay $1,000 you'll make 10% each year on your investment.  is that a good enough return?   if you think the risk of the company requires a 20% payoff, you shouldn't pay more than $500 for the company.
assistant