Valuing a Startup – Consult Oleksiy Nesterenko
When you are floating your startup company, the first task you must undertake is to value it because investors may want to know the worth of the company. But determining the value of your company is difficult because being a startup, it has no track-records, assets or revenues. Hence, it is better to consult with professionals like OLEKSIY NESTERENKO because these experts know that you have to raise funds to run your company only based on their valuation.
Unfortunately, investors may not think the same way as you do. They may undervalue your company while your company may be worth more. In this context, you must compare your startup with similar companies in the same field and in the same location. This will help you determine the right value of your startup. You may be an expert in your field but since you may lack expertise in comparing the worth of your company with other similar companies, it is better you seek the help of professionals like OLEKSIY NESTERENKO.
Further, forecasting the revenues of your startup company is also a challenging task. As financial experts often say, a company is not worthy of anything till it is profitable. But being a startup, you may have to undertake a long journey before you make profit. In other words, focusing on the future is the only way to know the worth of your startup. Factors like the quality of the team you have put in place for managing your company, the likelihood of achieving success, etc. must be considered for forecasting the revenues you may be able to generate.
Remember, there is a danger in over-valuing your company because it may induce investors to have high expectations. You may have to slog to deliver on their expectations. Especially, if you make faulty assumptions and commit the mistake of over-valuing your company, it may be impossible for you to deliver on your promises. That is why professionals like OLEKSIY NESTERENKO Startup Finance make it a point to value startups like yours in the right manner.
There are a few methods for valuing a startup. You have the Venture Capital Method that makes use of details like the rate of return expected at exit for valuing a startup.
The second one is known as the Berkus Method and in this, dollar values are attributed to the progress made by the startups in their activities including commercialization activities. You also have the Scorecard Valuation Method and the Risk Factor Summation Method. Professionals like OLEKSIY NESTERENKO possess the technical expertise to adopt the right method for valuing your startup company and hence, you are advised to entrust the task to such experts.
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