It is extremely important to ascertain the value of the company while it goes for the next round of funding or there is an opportunity of getting acquired. Both, Investors and Founders should know the right value of the startup.
StartupLanes value a startup scientifically through the valuated method developed by the Founder & CEO of StartupLanes – Shishir Gupta.
Benefits of Valuation:
- Worth of the Company: It is significantly important to obtain an accurate assessment of the Company. Estimates are not acceptable as it is a generalization.
- Measure the Achievement: Valuation will depict the difference between the target and present value of your company. This will help you plan and control the deviation. For example, if you have planned to reach a valuation of $200 million on a particular date, however the company is worth $120 million, then you can plan and control in order to cover up the difference of $80 million in near future.
- Merger/Acquisition: If a large company asks about purchasing your company, you have to be able to show them the value of your company, else, they will attempt to acquire your business or merge with it for as little money as possible.
- Equity Swap: Incase, you wish to acquire a small company, you will need to know the worth of your company. Generally, when the merger of small company in the big company happens, the equity swap option is exercised. Valuation is a mandatory requirement in this case.
- ESOP: It refers to the Employee Stock Ownership Plan in which a company offers equity shares to the employees for their contribution to the company along with salary or without salary. You have to find out the valuation of the company in order to inform your employees and issue the shares to them.
- Investor Requirement: Investors will invest at a particular valuation as they will get a percentage of ownership in your company. This percentage will be calculated on the basis of the current (pre-money) valuation.
- Save Money: If you don’t have a valuation ready then your investors or acquirer may consider a lower valuation for your company, in that case you may lose millions of dollars or several crores of rupees.
- Complete Research
- Company Valuation
- Valuation Report
Benefits of FairShare Valuation vs Others:
- Inclusive: FairShare method of valuation considers the features like Intellectual Property, Experience of the Founders, Management Team, Social Media Reviews, Profitability and much more. Other methods are very basic and doesn’t include much, in fact many methods of valuations are not even applicable in modern times. Earlier, social media never existed and old methods didn’t consider the impact of social media on business, therefore old methods are outdated.
- More Value: Your startup will get more value in FairShare method, on the basis of date and logical points.
- Preferred by Investors: The FairShare method of valuation is preferred by the investors are it is inclusive, modern, scientific and easy to understand method for the investors.
- Scientific Method: The calculations in FairShare valuation method are based upon data and logic instead of mere assumptions in few methods of the valuation.
- Widely Accepted: FairShare method is Globally accepted by all major Venture Capitalists and Angel Investors.
- Affordable: The cost of FairShare method of valuation is extremely low in comparison to other methods of valuation. Therefore, you get the best value for your money.
Process of FairShare Valuation:
- Select the service
- Add to cart
- Select NEFT to avoid convenience fee by the Payment Gateway. Make the payment through Payment Gateway.
- The StartupLanes team will contact you
- Our Operations Team will connect you to the valuation team.
- You will get it done within 7-10 business days.
- Voila! It’s done
Frequently Asked Questions (FAQs):
Q1: Can this valuation be used for Compliances?
A1: No, this valuation can only be used for the investors. For compliances this valuation can be given to a Registered Valuer, Eligible Chartered Accountant or Government Approved Valuer to make the valuation for compliances purpose.
Q2: Can I take the help of the Financial Analyst of StartupLanes for explaining this valuation to my investors?
A2: Yes, our Financial Analyst can explain this valuation to your investors in your Demo Day. This service is free one-time for video conferencing, however in case you need to have multiple meetings of the Financial Analyst, then you can pay a nominal fee to get it.