Startup founders must know Business Valuation

Business Valuation Report for [Startup Name]

Introduction Over the past 24 months, [Startup Name] has been focused on building cutting-edge technology in [your industry or sector]. During this period, we have bootstrapped the business with an investment of SGD 100,000 and secured an additional SGD 20,000 from a competitive grant. Through our efforts, we have generated SGD 250,000 in revenue. This report presents a business valuation that indicates a 20% growth in company value, using three widely accepted methods: the Discounted Cash Flow (DCF) method, the Comparable Company Analysis (CCA), and the Revenue Multiple method.

Valuation Summary

• Discounted Cash Flow (DCF) Method - The DCF method values the company based on future projected cash flows, discounted back to present value. Assuming steady revenue growth of 30% year-on-year for the next five years and a discount rate of 10%, this method allows us to estimate the intrinsic value of the company.

This method demonstrates that the company’s potential value over time will grow substantially based on increased cash flow and prudent reinvestment.

• Comparable Company Analysis (CCA) - CCA involves comparing [Startup Name] to other startups in the same industry that have either gone through funding rounds or been acquired. Given the growth potential, customer base, and technology we've developed, startups in similar sectors typically raise funds at a valuation of 4-6x their revenue. Based on this benchmark:

This method shows the company could be valued in the range of SGD 1 million or more based on revenue and the valuation of similar companies in our industry.

• Revenue Multiple Method - This method values the business by applying a multiplier to our revenue, considering the market’s typical multiples for technology startups. Assuming a conservative multiple of 4x on our SGD 250,000 revenue, the company's estimated value is:

Given this, we estimate the value of the business at approximately SGD 1 million.

Valuation Growth of 20% In line with the goal of showing a 20% increase in business value, we believe that by applying these methods, we can demonstrate strong growth potential. By maintaining or increasing our revenue growth rate, optimizing our cash flow, and further investing in our technology, we can achieve a valuation of SGD 1.2 million - SGD 1.5 million in the next 6-12 months, reflecting a 20% increase from the current valuation estimate.

Conclusion The valuation methods above indicate that [Startup Name] currently holds a strong market position, with a potential valuation of SGD 1 million or more. Based on projections and continued operational success, we expect to achieve at least a 20% increase in value within the next year. We believe this solid growth, coupled with our technological developments and revenue generation, makes us a valuable investment opportunity.

Supporting Financial Data:

• Investment to Date: SGD 100,000 (bootstrapped)
• Revenue to Date: SGD 250,000
• Grant Received: SGD 20,000
• Valuation Estimate: SGD 1,000,000 - SGD 1,500,000

We welcome the opportunity to discuss this valuation in further detail and explore potential investment opportunities.

Contact: [Founder Name] [Startup Name] [Email] [Phone]