Startup Valuation is the art of figuring out how much a company should be worth. The emphasize lies on “should”. The actual price of any asset is of course how much a…
Startup Valuation
-
-
The Discounted Cash Flow Method predicts a startup’s value by discounting all of its predicted cash flows by a discount rate that is meant to compensate for its riskiness. For…
-
The terminal value can best be understood as the expected sales price of your company at the end of the fast growth period. It is either calculated with a perpetuity…
-
The Internal Rate of Return (IRR) is the discount rate that makes all the cash flows of a Discounted Cash Flow Analysis (DCF) equal to zero. It can be understood…
-
Knowing now how IRRs are calculated, we need to differentiate between company IRRs and investor IRRs. Investor IRR should be calculated specifically as it is one of those key figures…
-
Multiple (or Comparable) Analysis is a metrics based valuation method. It derives a company’s valuation by comparing its key metrics to those of similar companies. With a simple rule of…
-
When planning your startup journey, a common misconception reads as follows: All you need is traction to raise funding. And if you are not profitable you will just raise more…