Discover How We Value Companies

Download Our Pre-Money Valuation Sample Report

A pre-money valuation is a useful tool for entrepreneurs in a variety of situations where an accurate understanding of their company's value is needed.

Download Now Seeking External InvestmentIf you're looking to bring on outside investors, a pre-money valuation can help you negotiate the best deal possible. It provides a clear understanding of your company's value, which you can use to set a fair price for your equity and a third-party valuation may be a good starting point for your negotiations.Download NowRetiring or Selling Your BusinessIf you're thinking about retiring or selling your company, a pre-money valuation can help you determine its fair market value. This will ensure that you get the best price possible when the time comes to make a deal.Download Nowissuing equity to employeesIf you're considering issuing equity to employees as part of their compensation, a pre-money valuation can help you determine the fair value of the equity you're offering. Please note that for 409A (Usa) and CSOP (Uk) use, this report is not audited and the final result is heavily dependant on the quality of your inputs. This pre-money valuation is geared towards fundraising instead: if you need a 409A or CSOP valuation visit this page instead!Download Nowresolving disputes about company valueIf there is disagreement within the company about its value, a pre-money valuation can provide an unbiased assessment to help resolve the issue. Please note that this report is not audited and the final result is heavily dependant on the quality of your inputs, and therefore its assumptions might be heavily challenged by your counterpart. If you need a pre-money valuation to use in court, or in a highly challenging environment, please reach out to us in order to receive a dedicated quoteDownload Now

Our 5+1 Methodology

01

Scorecard

The Scorecard Method, created by William H. Payne of Ohio TechAngels, values early-stage businesses by comparing them to market benchmarks across six qualitative criteria: team strength, opportunity size, product strength, competition, strategic partnerships, and funding needs.

02

Checklist

The Checklist Method, created by investor David W. Berkus, assigns weighted valuations to five key criteria, awarding portions based on a startup’s qualitative traits and comparing them to market benchmarks.

03

VC Method

The Venture Capital (VC) Method values early-stage companies by determining a target exit value using market EV/EBITDA multiples and discounting it by the required ROI based on the startup’s stage and investor expectations.

04

DCF With Multiples

The Discounted Cash Flow with Multiples method estimates a company's future acquisition value using market benchmarks like EV/Revenues or EV/EBITDA, then discounts it to present value. EV/EBITDA is preferred as it better reflects a startup’s cash flow generation, the key driver of valuation.

05

DCF With Long Term Growth

The long-term growth (LTG) rate, a key factor in discounted cash flow (DCF) analysis, represents the perpetual growth of a company's cash flows beyond the forecast period and is often sed to value listed companies.

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Dilutive Method

The Dilutive Method is not a precise valuation tool but helps determine the equity percentage investors will require for funding, typically ranging from 10% to 30% for early-stage companies. It calculates the pre-money valuation based on different dilution levels, aligning with the percentage founders are willing to offer in the current round.

Just An Idea Start-Ups ScaleUps Fast-Growing SMEs Mature Companies

01

Scorecard

02

Checklist

03

VC Method

04

DCF + Multiples

05

DCF With LTG

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Dilutive Method

Our 5+1 Methodologies Capture Companies at Every Growth Stage: From Idea to IPO

Start negotiations with the right foot with our

pre-money valuation

As an entrepreneur, you’ve put everything you have into your company. You’ve poured your blood, sweat, and tears into making it a success. But when it comes to figuring out how much your company is worth, you might be at a loss.

If you’re looking for external investors or considering retiring and selling your company, it’s essential to have a clear understanding of its value. Without this knowledge, you might have unrealistic expectations that could lead to disappointment when it comes time to negotiate a deal.

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Frequently Asked Questions

How long does it take?

Depending on the complexity of your company and business model, we need 1 to 4 weeks to complete the valuation (assuming we have received all the info we need)

Which information do you need in order to complete the valuation?

We will need some qualitative information and some quantitative data. Generally we want your company’s projections for the next 3-5 years, as well as other details. We’ll ask you to answer a number of questions and fill out a questionnaire.

How do the answers provided on the questionnaire change my valuation?

We use 2 qualitative methods and 3 quantitative ones. The answers you provide to the questionnaire will influence both the weights we apply to each method as well as the valuation of the qualitative methods.

Do you take into account valuations at previous rounds?

We do take this into account, and this information will be displayed in the report, but it will not impact our quantitative analysis.

Can I be part of the process and help you determine the value of my company?

While you are definitely part of the process and the answers to our questions will greatly influence the outcome of the valuation, we will value the company independently and you have no say on the final outcome.

How reliable is your process?

We use different valuation techniques in order to assess different companies at different development stages, but also in order to maximise accuracy. All methods are showcased in our report in order to communicate the different values that different methods yield.

This process heavily relies on the truthfulness of the information you provide us. We strongly discourage sending us incomplete, misleading or false information, as this will result in an unreliable valuation (and will probably backfire in your negotiations).

Is your valuation accurate?

Any valuation indicates the fair value of a company (or any other asset) as the price that would be received to sell it in an orderly transaction between market participants. This is therefore a general indication and doesn’t take into account specific interests of the parties that will be actually involved in the transaction.

In other words: take it as starting point. The real value of your company will be determined when you will shake hands with the investors.

Should an investor take this valuation at its face value?

Short answer: no…

Longer answer: This valuation report doesn’t replace Due Diligence. Any investor willing to invest, or banker willing to lend to a company, should make their own assessment, and be responsible for their own decisions.

How Does It Look Like?

Have A Look By Yourself

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