Investment (VC) valuation

In any business venture, business owners are always seeking funding and investments. From angel investors, venture capitals, crowdfunding, banks and other investors, these are key players in getting a business up and running. Our Investment Valuation services will help companies, especially early-stage startups to attract more investors by providing a comprehensive VC valuation. This valuation will enhance your pitch deck, as well as set the percentage of ownership for investments.

Investment Valuation

An investment valuation, or VC valuation, is perfect for valuing early-stage startups. It establishes the pre-money valuation of a company, even for pre-revenue startups. This refers to the value of a company before the financing round. The VC valuation reflects the view of an investor, who is looking for a high exit to reward them for taking the risk in investing in a startup.

Why is a valuation important for VC funding?

Securing funding for your startup can be challenging. Many investors, venture capitals, even family and friends, are skeptical whether or not your business idea will gain much success. This is why getting a valuation is important to be able to convince potential investors to believe in your business. A valuation not only gives value to your business, but it also shows your business’s advantages in the industry.

Eqvista’s Investment Valuation

With Eqvista, we guarantee a valuation that is the perfect negotiation tool for companies and investors. It sets the middle ground for both parties during discussions on investments or funding. Our team uses valuation methodologies such as income approach, market approach, and VC approach. Our team also considers other applicable startup valuation methods as well. Our valuation reports are prepared by our expert team of NACVA certified valuation analysts.

Valuation Methodologies

There are many valuation methods available, and the 3 most common methods in VC valuation are market approach, income approach, and venture capital (VC) approach. Our valuation team has years of experience in using these approaches in conducting valuations.

• Market Approach – In using the market approach, an asset’s worth is based on publicly available data of similar assets and comparable situations. The main idea of this approach is to get the price that is a multiple of the benchmark, that is the price to earnings ratio, price to book value, EV to Revenue, EV to EBITDA, etc.
• Income Approach – Compared to the market approach, the income approach does not need to look at any past similar transactions in the market. In the income approach, the business is valued at the present value of its future earnings or discounted cash flow (DCF). The cash flows and future earnings are determined by projecting the present earnings of the company, then adjusting them according to growth rates, taxes and other factors.
• Venture Capital Approach – The VC valuation approach is the most common startup valuation approach. This approach establishes the pre-money valuation of a company that has not achieved revenue yet. By using this approach, potential exit values are easier to estimate once certain milestones are reached.

Investment Valuation Report

Our clients are given an in-depth and detailed VC valuation report that provides an overview on the valuation methods used, and tables & graphs supporting the explanation. The report also includes your business’s competitive advantages, competitors, and capital structure. Our valuation reports are backed by calculations and fully customized for your company.

Why You Need an Investment Valuation

To get the attention of investors, you will need to provide them with a well-thought-out pitch deck that illustrates what your business does or will do. By getting an investment valuation, you can enhance your pitch deck to show what your company is valued at and what your competitive advantages are. You will attract more investors, and in turn, get more funding for your business. Also, by having an investment valuation, you can set the percentage of ownership for investments (e.g. if your company has a pre-money valuation of $10 million, and you want an investment of $1 million, then you should ask for 10% ownership).

Pricing starts from $1,890

Eqvista’s investment valuation starts at $1,890. Our valuation team will conduct the valuation in a professional and timely manner. You are guaranteed a valuation that is done by NACVA certified analysts and full customer service support to have a seamless process. For more information, contact us now!