Startup Valuation

This is very straightforward when we are valuing grown-up companies but valuing process of early-stage startups is very diverse. Due to unavailability of years of financial data about startup business, Founders or investors have to rely on more innovative ways. These ways or processes are based on quantifying a bit of basic risk versus reward finance.

Here are  several factors to rate , on which valuation of a startup depends. Each factor may take one of the values from the set {-500,000$, -250,000$, 0$, +250,000$, +500,000$}. Negative value indicates a risk in growing the company while positive value indicates a prospect for growing the company. Initially all factors are set to ‘-500,000$’.