What Is Startup Valuation?

If you’re a startup, knowing your company’s value is important in the business world.

There are many valuation methods to determine your company’s value, but Eqvista has developed startup valuation software. It provides an easy solution for startups looking for valuations in a short time.

HOW DOES THE SOFTWARE WORK?

The startup valuation will include 32 multiple-choice questions that cover 5 areas – Management, Business, Product, Market, and Sales and Marketing.

After answering the questions which will take approximately 20 minutes, a summarized valuation report will be prepared and available for download.

Note: For accurate valuation, select the best answer suitable for your company. To know how to fill out the startup valuation questionnaire, check out the support article here!

VALUATION REPORT

After answering the questionnaire, a valuation report will be prepared that includes:

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. An analysis is carried out to determine 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.
Information with customized graphs that explain the different methods used in the valuation.

Note: This is not a full valuation report, but only a quick summary. To give you an idea of what your valuation report includes, we have a sample report of a startup valuation as a reference.

HOW LONG DOES THE VALUATION TAKE?

The startup valuation process can take around 20 minutes, depending on how quickly you go through the questions.

BENEFITS OF STARTUP VALUATION

It is an excellent tool for startups to help secure and negotiate funding from potential investors. The valuation report can be used to acquire funding for your company and new projects.
It can attract a lot of venture capitalists and shareholders to your business.

PRICING

Getting a valuation can be costly, especially for new businesses. That’s why Eqvista has created an alternative for startups looking for a cost-effective valuation.

Our affordable pricing package offers:

Basic Plan with essential features at $89.
Growth Plan to scale your businesses with advanced features at $199.

Note: To further understand the difference between the two plans, check out the support article here!

If you want to further understand how to use the Eqvista application, check out our support articles or contact us today!