Custom Weighting

There are many valuation methods to value a company, but Eqvista has created startup valuation software that provides an easy solution for startups looking for valuations in a short time.

Once you have placed the order for valuation, you can fill out the valuation questionnaire. Then, a summarized startup valuation report will be prepared and available for download.

Custom weighting allows you to try out different weight combinations to see the impact on the final valuation. It gives you a better understanding of which methods are most impactful in determining your startup’s value.

Note: The custom weighting feature is only available for “Growth” plan holders. Kindly upgrade your plan to unlock this feature. 

Here are the steps to follow:

Step 1:  Log into your Eqvista account and select the company account. 

On the dashboard, click on “Startup Valuation” on the left-hand side to get a drop-down menu and click on “Custom Weighting”. 

Step 2: Once you click, you will be redirected to the following page.

Here, the value of your startup in the market based on different valuation methodologies:

• Scorecard Method – The method analyses businesses based on factors that have an impact on a company’s value. It helps angel investors determine a valuation for startups that have the potential to expand.
• Risk Factor –The method is a rough pre-money valuation method. It bases the company’s valuation on a comparable startup’s base value, and this baseline value is then modified for a total of 12 risk variables. 
• Berkus Method – The Berkus Approach evaluates a startup based on five main success factors. It analyses how much value the criteria provide to the enterprise’s total worth in quantitative terms.
• VC Method –The ideal solution for startups yet to generate revenue. The method can be used to value early-stage and pre-revenue enterprises.
• DCF Method – The method uses predicted future cash flows to determine the value. It calculates the current value of an asset based on future forecasts of how much money will be generated. The method considers inflation when calculating the present value of the company.

The customized graph explains the impact of different valuation methods in determining your startup’s value.

Step 3:  Let’s assume you want to try out different weight combinations to see how they affect the final valuation. 

For each valuation method, click on the “+” sign on the right side to add value. You can also decrease the value that you added by clicking on the “-” sign on the left side. The percentage of different valuation methods that impact the valuation value. If the total percentage is 100%, you will see a message that says “Total: 100%” at the bottom of the page.   

Note: Ensure that the total of all the percentages reaches 100% as it cannot be more than that. 

This means that you must adjust the percentage here to make it equal to 100%. To reset the values entered for different valuation methods, click on “Reset”. 

Once you have reached 100%, you will also notice that the “Apply” button can now be clicked. 

But to see the value on the pre-money valuation section of the dashboard, you will have to follow the next step.

Step 4: To see the pre-money valuation, click “Startup Valuation” and from the drop-down menu click on “Dashboard”.

Note: On this page, you will find valuation data and methods breakdown. To further understand the dashboard, check out the support article.

Similarly, you can fill out software valuation and projections to determine your company’s value. Check out the respective support articles to learn more about this. To know more about Eqvista, check out our support articles and knowledge base. For further queries, get in touch with us!