• Valuing start-ups
Information Sheets:

Valuing start-ups

12 November 2020

This summary guide is intended for entrepreneurs, investors, valuation professionals and anyone who might be interested. The universe of start-ups is rich and diversified. Yet start-ups share some characteristics that may make a valuation exercise tricky and traditional valuation approaches hardly relevant. In any case, most start-ups need private capital, and despite increasing legal financial mechanisms to bypass valuation issues, a valuation exercise remains crucial for objective negotiations and later venture monitoring. A proper valuation exercise should rely on a set of methods (rather than on a single approach), selected on the basis of the start-up’s maturity stage and available information, as well as on a solid business plan and a good understanding of the success factors. Let’s embrace the vibrant world of start-ups!