Who Decides Your Company's Value?
Who Decides How Much Is Your Company Worth?
In the past weeks we have established why valuations are helpful, when it makes sense to get your venture evaluated and what are the most common valuation methods for revenue generating companies and early-stage startups.
We spoke about the benefit of getting a third party to evaluate your business in order to be objective and to make sure you are being brought back down to earth – yes, we get it, you think your venture is priceless, but maybe not everyone shares your opinion (yet)…
So where can you actually get an objective and professional third party startup valuation?
Our Valuation Methodology
Our pre-money valuation at Matters2 is the result of the weighted average of different valuation methods, the 5 leading methods that you were introduced to in the first articles, plus an additional sanity check.
As you already know, the use of several methods is a best practice in company valuation; looking at the business from different perspectives results in a more comprehensive and reliable view.
QUALITATIVE METHODS
1. Scorecard Method
2. Checklist Method
QUANTITATIVE METHODS
3. VC Method
4. DCF Method with LTG
5. DCF Method with Multiples
+ Dilutive Method
If you need a reminder of what each method is about, no worries, check out this overview: https://matters2.com/valuation/
Equidam
Ok, hold on, you might be thinking that you do want to create the valuation yourself but would just like to add the credibility stamp of a 3rd party and save some money – well, let’s face it, being a founder means not having deep pockets… at least not yet 😀 – we can help with that too!
As promised, we would like to introduce you to Equidam.
In order to create grounded valuations, Equidam uses the 5 valuation methods and combines them with the most reliable data for the valuation parameters, tailored to 90 countries and 136 industries.
More than 130,000 companies already used Equidam to raise their seed and Series A rounds, so they definitely know what they are doing 😀
At Matters2 we have stress-tested their platform and found it an easy and intuitive tool for entrepreneurs and founders to value their start-up.
AND A DISCOUNT
Equidam is not the most flexible of tools and if you add in a bit of complexity it might be better to directly involve a professional (i.e. us wink wink), but we understand that, especially at an early stage, it’s important to have a relatively fast and cheap way to value your start-up.
That’s why we have decided to partner with Equidam and direct pre-seed companies towards their services.
To make things even more interesting, we can now offer a 15% discount on Equidam’s valuations. Just follow this referral link to enjoy your discount.
To read more about our partnership with Equidam, check out our Blog “Valuations Made Easy”
STILL NEED HELP?
We hope this will help you fast-track your valuation and propel you towards your next funding round! But reach out to our Valuations Experts if you have any questions or if you would like us to create a valuation for your venture.
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DCF Valuation Template
Cap Table
Getting To Philosophy
The Trinity of Management
9 Negotiating Principles for Investment Success
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The Scorecard Valuation Method
THE CHECKLIST VALUATION METHOD
101 Startup Stages
