How to Value Your Start-Up Business

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Fremont: It is commonly said that business valuation is more art than science. We all know that the highest value of our business is whatever the highest bidder in the market is willing to pay. However, as compared to other spaces, confirming on a start-up price is more difficult to discover. Entrepreneurs need to put a value on their start-ups in order to raise fund and investors need to put a value on their investments to generate liquidity. At an early stage of your start-up, there are not going to be a lot of tangible or relevant operating metrics, such as revenue, users, customers, employees and others that you can reliably use to justify what your business is worth. We bring to you some tips on how to value your start-up. It is Highly Context Specific
How to Value Your Start-Up Business
You and the investor is betting on the future that is unknown and it is easy to misjudge what the future might turn out to be. Therefore, valuation of your start-up is highly context specific. The investors will look at the stage of your business, the market you are in, i.e., growth market or saturated market and how much capital does your start-up need across life cycle.

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