Valuation of Startups and Emerging Companies
In a fast moving world new technologies and industries are brought to life every day. Companies that are the leaders in the innovation process are often young small companies called startups. Startups don’t have much history and are often not profitable in the first stage of their existence. Investing in startups is considered high risk, but offers high potential rewards, which is why more and more investors are interested in investing into startups.
Based on our experiences, we adapted valuation approaches used in developed capital markets to value startups at the conception (early stage or proof of concept), for the purposes of the first seed round, when investors are first entering into a startup, or valuation of startups for investors interested in entering in later stages (Series A and beyond).
Valuation of startups includes valuation of:
- Single startup company for sale or capital increase
- Valuation of incubators or accelerators, which are involved in the startup business, for sale or capital increase