Explaination: Determining the valuation of the Start-up is not an easy task. The biggest determinant of the start-up value is the market forces of the the industry and the sector in which it plays and which includes the balance between the demand and supply of money, the timelines and size of recent exits and the desperation of the entrepreneur looking for the money.

How it applies to Startup/Investor and its impact: Valuation is one thing that is very subjective. Generally the method opted for determining valuation of the Start-up is DCF method i.e. Discounted Cash Flow method.

Investors generally look for the profile of the entrepreneurs to determine the valuation besides the business idea, sector, competitors and the growth chart (amongst others). If the team is confident about the idea and ready to sail through uncertainities that might come in their way to back their product, there is a high chance that Investor would be willing to invest in that venture.

Related Posts

May 6, 2020

Fall Away Right

May 6, 2020

Lock-in Period


  1. Hey there this is kind of of off topic but I was wanting to know if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding experience so I wanted to get guidance from someone with experience. Any help would be greatly appreciated!

  2. Hello, i feel that i noticed you visited my weblog so i got here to “go back the prefer”.I’m attempting to to find issues to improve my web site!I assume its good enough to make use of some of your concepts!!

Leave A Reply