A business that is yet not established in the market with no fixed time about its flourishing and profit-making days is mainly referred to as a startup. Valuation is the process of determining the actual worth of the company based on its market value. It is often very difficult to determine the valuation of a startup. The process of determining the valuation of a startup requires certain steps and points of consideration.
A startup with less or nothing as income and profits and the future is also not certain it becomes extremely difficult to determine the valuation. Especia is the company with your one-stop-destination in determining the best and accurate valuation of your startup. The startup valuation services allow the investor to develop an interest in your startup venture.
To determine valuation for every company is very important because it deals with the company's actual worth and prepares the company for the loss. The startup should consider taking the startup valuation services so that they can determine their position in the market. The startup valuation services will allow the company to know exactly what they can exchange with the investor in return for capital for the company.
Especia - The Ultimate Stop For Startup Ventures Valuation In India
Being a startup, it is very important for you to know where your company stands and what will be the future of your company. Knowing about the accurate value of your company will help you attract investors, and you will be able to make your way into the market. Especia is a startup valuation firm in India with immense years of experience in providing help to the startup company valuation with the most suitable startup valuation methods.
The startup company valuation has benefits such as knowing the startup's market value, near-future plans such as business expansion, getting investors and lenders. Especia is dedicated to providing startup valuation services through numerous business dominions and uses the startup valuation methods that are certain the startup's valuation is accurate. Below, in the article, are the startup valuation methods listed used by Especia.
Startup Valuation Methods Used By Especia
The startup valuation methods used by Especia determine the valuation of the startup by taking into consideration various factors that influence startup company valuation. The top valuation company uses numerous methods for a startup, and they are as follows:
Self Evaluation Method
For a startup valuation firm, it is very necessary to carry out self-evaluation; this is a process of keeping track of all the company's assets. In this step, the startup venture must keep track of Key Progress Indicators (KPI) such as profit, popularity rate in the market, and customer satisfaction rate.
Cost-To-Duplicate Method
The method involves considering all the costs required for the startup to establish another similar startup from the bottom line. This includes the costs of all the products and assets of the startup. The method helps the investors in determining the actual cost of the startup venture.
Market Multiple Method
The market multiple method involves determining the profit of the product in the market of similar other companies. The startup company aims to launch the XYZ product in the market; then, the investors would look at the already established XYZ product's value in the market to determine a profit rate before investment. It is a method that investors mostly prefer in doing the valuation of the startup because it allows the investor to directly get an approach about the profit and loss rate related to the startup.
Discounted Cash Flow (DFC) Method
This is a complicated method as the startup valuation method involves a determined value of cash in return to the investor after a due course of time. It involves the calculation of return rate through projecting the profit, loss, asset value, company's worth shortly, and securities of the company. The method involves a discounted rate of return while calculating that the company might eventually fail to prosper.
Valuation By Stage Method
The investors determine the value of a startup based on calculating the popularity of a similar product in the market. It is a direct and short method in determining the startup's valuation by valuing other similar companies and their products.
Venture Capital Method
The method calculates the amount of return to the investor. The method involves pre-money valuation and is mostly suggested for the startups trying to raise funds.
The Book Value Method
The method involves determining the valuation of the startup by calculating the company's assets and does not involve any calculation of the profits of the company.
Risk Factor Summation Method
The method involves 12 factors that determine the profit that the startup will make shortly. To name a few are management, sales, and marketing risk, popularity risk, milestones achieved, legal risk, capital and funds risk, etc.
Comparison Method
As the name suggests, the method compares another similar startup value and prepares an estimated startup company valuation.
Berkus Method
The determining of this method involves taking into consideration the management of the startup, the quality of the product, the services provided by the startup venture, the popularity of the similar product in the market, market friendships, strategies of advertisement opted by the company, and predictions of the ongoing sale of the product launched by the company. Every scale mentioned is associated with some amount of money, and hence, the startup company valuation can be determined.
Why Especia For Startup Company Valuation?
Reasons behind choosing Especia from several startups ventures are listed below, and this will help you in deciding why people consider Especia as their top valuation company for startups. The reasons are as follows:
The years of experience behind the valuation of the startup ventures.
The maximum level of accuracy achieved for the valuation of startup ventures.
The involvement of AI startup valuation, startup acquisition valuation, pre-money startup valuation, technology involved startup valuation, timely startup valuation.
The startup valuation methods and startup valuation calculators used in determining the valuation of the startup venture are considered to be the most accurate methods and calculators in the market.
The startup valuation methods used are internationally considered.
The startup valuation consultants are experienced and dedicated professionals and value your startup.
High level of popularity among the reputed clients all over India.
The factors such as progress chart of the company, stature, pre-valuation sales, advertisement department, popularity, capital, cash flow, competition, less profit margin, risk rate, failure of a product, market challenges are a few factors that influence the valuation of the startup venture sometimes positively and sometimes negatively. Startup valuation consultants consider the above mentioned and curate the most accurate startup company valuation using the best startup valuation methods.
Startup Valuation Certificate
A startup valuation certificate is a certificate that confirms a Fair Market Value (FVM) of the shares of the company in the market. The company requires the certificate at the time of issuance of shares and at the time when the company raises funds.
For more information or queries on Valuation requirements, you can simply write to us at accounts@especia.co.in.
