At Valoriza we provide clear and insightful valuations for startups, using robust complementary methodologies and senior-level expertise. We always emphasize market methods and benchmarking—focusing on identifying as many comparable cases as possible where we could draw some market insight, in both later and earlier stages than our client. To date we have carried out Over 150 successful startup valuations for a wide range of industries, stages, and business models.
Valuations will always have a subjective aspect—but startup valuations go further and can often be controversial. Startups by their very nature limit how exact the science of their valuation is, often having untested products, negative cash-flows, and non-linear growth phases. Robust, complementary methods of valuation are crucial in making startup valuations more methodical and empirical. Repeating the exercise of valuations with a second or third opinion is key.
Raising capital is a crucial moment for obtaining valuations, which serve as the starting point for negotiations that determine ownership and investor stakes. For investors, valuations serve as a soft due diligence exercise, testing the founders’ models, assumptions, growth thesis, and market expectations in addition to the startup’s history and key metrics. For founders, the valuation process can prepare them to face the questions and perspective of a potential investor. Knowing the drivers of value in their startup’s field and finding strong benchmarks can give founders new tools to help defend a higher value in negotiations and stave off dilution.
Getting second and third opinions on valuations over time—even without an imminent financing stage—is highly useful for startups. Not all valuators apply the same valuation methods and not all of them apply the methods in the same way. Comparing different valuations and what they bring to the table gives the founders more information about each, and therefore a better understanding of where their startup stands.
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Business valuation and M&A for companies that want to understand their value and make the best decisions regarding investment, growth, M&A, and financing.