The Startup Club is happy to introduce our Startup Valuation blog series, solely dedicated to Valuation of Startup Companies.
Valuation is a big part of a company journey, and we want to educate the startup ecosystem, providing information that will help you in crucial business decisions.
In the coming weeks and months, we will show you the various aspects of startup valuation, the deal structure for financing at their Seed Stage, Angel Funding and Series” A” Funding stage and the valuation drivers to increase the value of the business.
First things first, what is Startup Valuation?
Startup valuation is the process of calculating the value of a startup company. Startup valuation methods are particularly important because they are typically applied to startup companies that are currently at a pre-revenue stage.
A startup’s valuation should not be performed as a rule of thumb, or with black box practices that leave space for arbitrary conclusions. Traditional valuation approaches are methodological and grounded, but they need to be adjusted to capture the value of startups.
A Startup Company will have multiple stages including the Idea Stage, Development Stage, Startup Stage, and Expansion stage. The valuation drivers and the final value conclusion will change based on stages of development. The purpose of the Valuation is to start a fruitful and transparent negotiation process between the parties involved. It shows the valuation of the company, its details, the financial projections, and all the parameters involved.
Most importantly, it is useful to the Angel & VC Investors during your next stage of financing.
Stay tuned for more in our blog, and learn about out Valuation services here:
By Dulal Das
Please contact contact@thestartupclub.net for any questions, clarifications and further help.
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