Startup Valuation

Hi everyone, A hacker pal in Davos said $0.4 should be the cheapest software-based advert to sell in any software industry. Since most or all startups are close to nothing for a value starting out, I felt that figure should be good enough for naming an original purchase price for a startup stock.

So here's my math for what an angel gets for investing $2,000 in a startup if the number of nominal shares before outside investment was 30,000 for example:

2,000 / 0.4 = 5,000 shares

5,000 + 30,000 = 35, 000 (the new stock of nominal shares)

5,000 / 35, 000 = 0.14 (approx.)

So the angel gets 14%.

Just wondering if we could attach the value of a startup stock to a software product of the cheapest rate. I'm out on your take. What do you think please?