In simple terms, startup valuation is the process of quantifying the worth of a company, aka its valuation. During the seed funding round, an investor pours in funds in a startup in exchange for a part of the equity in the company.

This is why valuation is important for entrepreneurs as it helps in determining the equity which they have to give to a seed investor in exchange of funds.

• To offer a product, brand, or a portion of a business for sale
• Negotiations and commercial benefit
• To calculate the equity stake
• Aids founders in the evaluation of their businesses.
• Insolvencies, mergers, and takeovers can all benefit from joint venture agreements.

The most important factors are usually traction, reputation, prototype, pre-valuation revenue, the distribution channel and the industry.

8 typical strategies for valuing a startup:

1. Method of Scorecard Valuation
2. The Venture Capital Method
3. The Berkus Method
4. The Book Value Method
5. Method of Comparable Transactions
6. Method for Summarizing Risk Factors
7. The Discounted Cash Flow Method
8. The Cost-to-Duplicate Method

• Company Profile
• Last 3 years Financials
• Projected Financials for Next 5 years
• Similar Companies Names
• Last valuation Report (If Any)
• Purpose of Valuation & Summary of Deal

Valuation matters to every startup because it helps in deciding the amount of equity an entrepreneur has to give to an investor in exchange for requisite funds.
This implies that if a company has a higher valuation, it has to give a lesser amount of equity or shares to an investor in exchange for seed investment. Not only for entrepreneurs, but startup valuation is also vital from investors’ point of view because it helps them gauge the amount of return they will receive on their invested amount.

We have a vast experience in this field and we will provide you with the best Startup Business Valuation Services and tools irrespective of the valuation report requested by you.

Moreover, based on our client’s unique needs we offer different types of valuation reports ranging from, a comprehensive valuation report to an opinion letter. We take pride in the fact that we charge reasonable fees and has made many trusted and happy clients over the years of our functioning.

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