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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4434
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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What is the best method to valuate a start-up company seeking

Resolved Question:

What is the best method to valuate a start-up company seeking venture capital?
Submitted: 4 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 4 years ago.

Dear Friend,

 

There are may methods to evaluate a start up company. The company is evaluated pre-money and post money. That is, before the funding is done and after the funding is done.

 

However, most of the times, it is evaluated as per its ROI that it offers. This is the main factor that affects valuation. The venture capitalists, at whatever the stage of funding, i.e. seed capital for further infusion, will see what the value of the stock of the company would be and the exit strategy that it offers.


The following will give good general reference to you http://www.thedailymba.com/2010/04/03/how-to-evaluate-a-startup-company/

 

I hope this would help...

Warm Regards,

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