The first step in valuing a company is agreeing on the valuation method before discussing numbers. The second step is consulting an independent third party for the valuation after agreeing on the method. Key valuation methods include: Discounted Cash Flow (DCF): Based on future cash flows discounted to present value. Comparable Company Analysis (CCA): Compares metrics to similar companies. Precedent Transactions: Values using past deals for similar firms. Asset-Based Valuation: Based on the value of a company's assets. Earnings Multiplier: Uses a multiple of the company’s earnings. Market Capitalization: Stock price times outstanding shares. Venture Capital Method: Estimates based on future exit values.

Enfrentar opini?es conflitantes sobre o valor de uma startup é um desafio comum, mas é possível preencher essa lacuna com os investidores através de algumas estratégias eficazes: Apresente dados concretos: Utilize métricas financeiras, compara??es de mercado e análises de concorrência para fundamentar sua avalia??o. Demonstre o potencial de crescimento: Mostre como a startup se posiciona para escalar, destacando oportunidades de mercado e inova??es. Envolva partes interessadas: Crie um diálogo aberto com investidores, ouvindo suas preocupa??es e ajustando sua apresenta??o com base em feedbacks construtivos.

Startup valuation methodology will differ as per the stage a startup is in. A revenue generating startup with a few years of existence may use triangulation (a mix of both DCF as well as relative valuation based on multiples). For a very early stage startup, DCF would depend on the assumptions and hence the startup founder would have to defend the growth and other assumptions like addressable market size and margin expectations in order to dismiss the conflicting views. The investor can also ascertain what could be the valuation of the startup based on industry multiples (if available) after 5 years and discount the same with the expected return to calculate the present value of the startup that can be assigned.

In my experience as a venture investor, if we are dealing with a later-stage startup with financial metrics like revenue, margins, and even EBITDA, the rationale for a valuation becomes more straightforward by using a set of assumptions to project the statements and then apply a comparable multiples analysis at exit; you then bring this to net present value. However, if it is an early-stage startup, there are two main drivers of valuation and neither of these are scientific. 1. the supply-demand of the deal, 2. the ideal cap table split between common and preferred to maximize the outcome while still compensating everybody for their risk. For example, if a VC values the company too low in the seed, employees will not be fairly incented.

As a founder, do not provide a view of what your startup is worth. Your aim is to communicate why you are the best team to solve a big and urgent problem with a total addressable market large enough to require external funding. Let the investor tell you what he/she thinks your startup is worth. A good investor will be fair. It's never a great idea for an investor to drive a win-lose bargain. Word gets round.