Startup Valuation Services by Libord

Category : Knowledge Center

A business that is not yet established in the market, with no fixed timeline for its flourishing and profit-making days, is mainly referred to as a startup. Valuation is the process of determining the actual worth of the company based on its market value. It is often very difficult to determine the valuation of a startup. The process of determining the valuation of a startup requires certain steps and points of consideration.

For a startup with little or no income and profits, and an uncertain future, it becomes extremely difficult to determine the valuation. Libord is the go-to company for determining the best and accurate valuation of your startup. The startup valuation services offered by Libord allow investors to develop an interest in your startup venture.

Determining the valuation for every company is crucial because it deals with the company's actual worth and prepares the company for potential losses. Startups should consider taking startup valuation services so that they can assess their position in the market. These services enable the company to know exactly what they can offer to investors in return for capital.

Being a startup, it is vital to know where your company stands and what the future holds. Knowing the accurate value of your company will help attract investors and pave your way into the market. Libord is a startup valuation firm in India with extensive years of experience in providing assistance to startup companies using the most suitable startup valuation methods.

Startup company valuation has benefits such as understanding the startup's market value, planning for near-future expansions, attracting investors and lenders. Libord is dedicated to providing startup valuation services across various business domains and employs startup valuation methods that ensure accuracy. Below, in the article, are the startup valuation methods used by Libord.

Startup Valuation Methods Used by Libord

The startup valuation methods used by Libord determine the valuation of the startup by taking into consideration various factors that influence startup company valuation. The top valuation company uses numerous methods for a startup, and they are as follows:

1. Self-Evaluation Method: For a startup valuation firm, it is crucial to carry out self-evaluation. This process involves keeping track of all the company's assets, including Key Progress Indicators (KPI) such as profit, popularity rate in the market, and customer satisfaction rate.
2. Cost-To-Duplicate Method: This method considers all the costs required for the startup to establish another similar startup from the ground up. It includes the costs of all the products and assets of the startup, helping investors determine the actual cost of the startup venture.
3. Market Multiple Method: This method involves determining the product's profit in the market of similar other companies. Investors assess the value of an already established product in the market to determine a profit rate before investment. This method is preferred by investors as it provides a direct approach to the profit and loss rate related to the startup.
4. Discounted Cash Flow (DCF) Method: This method involves determining the value of cash returned to the investor over time. It includes the calculation of return rate by projecting profit, loss, asset value, company worth, and securities of the company. The method involves a discounted rate of return, considering the possibility that the company might fail to prosper.
5. Valuation by Stage Method: Investors determine the value of a startup based on the popularity of a similar product in the market. This method is a direct and quick way to determine the startup's valuation by valuing other similar companies and their products.
6. Venture Capital Method: This method calculates the return to the investor, involving pre-money valuation. It is suggested for startups seeking funds.
7. Book Value Method: This method involves determining the valuation of the startup by calculating the company's assets and does not involve any calculation of the company's profits.
8. Risk Factor Summation Method: This method involves 12 factors that determine the profit that the startup will make shortly, including management, sales and marketing risk, popularity risk, milestones achieved, legal risk, and capital and funds risk.
9. Comparison Method: This method compares the value of another similar startup and prepares an estimated startup company valuation.
10. Berkus Method: This method considers the management of the startup, the quality of the product, services provided by the startup venture, popularity of the similar product in the market, market relationships, advertising strategies, and predictions of ongoing product sales. Each scale mentioned is associated with a specific amount of money, allowing the determination of startup company valuation.