How to do valuation for your startup

Name: How to do valuation for your startup
Rating: 3.4 (13 reviews)

Learn about the importance of valuation in fundraising

Created byHajara AlAmodi

Last updated 12/2022

English

What you'll learn

How to come up with a valuation for their startup
How investors and venture capitalist value companies
Different valuation formulas and how they are used
How to value a business at different stages of growth

Course content

1 section • 16 lectures • 1h 11m total length

WHAT IS VALUATION4:55
What is valuation? Is it finance or accounting?
WHAT GOES INTO A VALUATION17:15
Let's discuss what goes into defining a VALUATION number for a business.
PRE- MONEY & POST-MONEY VALUATION9:59
Two very important topics, that become the basis of drawing valuations and calculating net worth- pre money and post money numbers.
VALUATION METHOD - BERKUS4:38
Lets learn about the Berkus Method of calculating a business's net worth, which determines the amount a founder can raise.
VALUATION METHOD - DILUTION3:34
Let's learn about the Dilution method for calculating a business's net worth. An important topic for a founder to think about as well.
VALUATION METHOD - RISK FACTOR SUMMATION4:08
Startups face many risks. Lets learn about the Risk Factor Summation Method of calculating a business's net worth. Any savvy investor, will take all the risks into consideration when investing and so should a founder, before going to those investor meets.
VALUATION METHOD - SCORE CARD METHOD3:00
Lets now talk about the Score Card Valuation Method of calculating a startup's value.
VALUATION METHOD - COMPARABLE TRANSACTION1:48
The Comparable Transaction Method. Another technique used by investors.
VALUATION METHOD - BOOK VALUE3:23
The classic, time proven method of valuation - Book Value Determination.
VALUATION METHOD - MULTIPLES OF REVENUE3:01
If your business is generating revenues, then this is an applicable method of valuation, you want to learn about.
LIQUIDATION VALUE2:11
As an entrepreneur, we never want to think about liquidating our business, but that can be a reality at times. Risk averse investors will give this a consideration and try to use the liquidation value as the valuation for a startup. Do you know how its done?
VENTURE CAPITAL METHOD2:41
Just like the name suggests, this is a method that is used by the venture capital investors.
DISCOUNTED CASH FLOW4:20
A very important method, that is a foundation for some other valuation techniques.
FIRST CHICAGO METHOD1:56
Another popular method used by the sophisticated investors for valuing startups.
MOST COMMON METHODS USED 11:40
What are some of the other commonly methods used by investors of all categories? Let's learn about it.
MOST COMMON METHODS USED 22:33
What are some of the more common methods used by investors of all categories? Let's continue learning about it - Part 2.

Requirements

Basic mathematical skills.

Description

Did you know it takes a good 6-8 months to raise funds for your business.

Did you also know that a good 70-75% of startups are rejected by investors.

But investors exist for a reason and that is to invest, and startups do get funded.

Defining valuations is a very time-consuming process and if a founder is not prepared well, then it can threaten the existence of a business or the equity held by a founder.

As a founder, you cannot do justice to yourself and your company, if you do not know, how investors, value your business. Understanding, the perspective from the other side of the table is valuable for an entrepreneur and so, it is the reason behind my course.

Fund raising successfully is CRITICAL to the survival and growth of a business.

So, don’t take this lightly!

In this class, I will teach you, how to value your company and get ready to take on the investor.

As an investor, I have seen many founders struggle with justifying a value for their business and many do not understand how a business is valued by the investor.

It is a huge disadvantage to founders, when they do not know how investors value their business.

In this course, we will learn about business valuation. How to define a value for a business, figure out its worth, and be able to explain it to the investors. Knowing the numbers is critical! We will discuss how seed investors, angels and venture capitalist value a company. This course will help the founders understand, how investors think about valuations.

I will teach you the rules of the game used by the investors. Take my class before you start speaking with investors.
LEARN THE GAME!

Who this course is for:

This course is highly useful for entrepreneurs with startups and young companies, who are trying to raise funds for their business. Founders, who will be meeting investors to negotiate on funding for their business.