How Much is Your Startup Worth? Five Ways to Find Out | DataDrivenInvestor

How to Value a Startup? Five Market-Proven Strategies

Dave Berkus Method

Risk-Factor Summation Method

  • Management (system, approach, executive team experience, etc.)
  • Stage of business (affects the prognosticability)
  • Political risks (changes in legislation, upcoming elections)
  • Production risks (do you have an established line already?)
  • Marketing and sales risks (market vision, well-knit supply lines)
  • Funding risks (how fast can you find extra capital for your business?)
  • Competition risk (are there competing products and how strong are they?)
  • Technology risks (level of tech experts, access to advanced technology)
  • Litigation risks (partners’ rights, patenting, etc.)
  • International risks (shipping, analogues, international patent laws)
  • Reputational risks (non-eco-friendly product, stakeholders involved in scandals)
  • Lucrative exit potential

Comparison to Other Startups

Discounted Cash Flow Method (DCF)

Venture Capitalist Method

What Method is Right for Your Startup?

--

--

Head Of Business Development at QArea. I’m passionate about new technologies and how digital changes the way we do business.

Love podcasts or audiobooks? Learn on the go with our new app.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Sandra Parker

Sandra Parker

Head Of Business Development at QArea. I’m passionate about new technologies and how digital changes the way we do business.