25. October 2020

Startup Valuation in the 21st Century

 

An Introduction to the seed and early-stage valuation practices: setting best-practice methods and standards for the future.

“Startup Valuation in the 21st Century” is a comprehensive guide about seed startup funding practices, where I detail advanced financial plan and startup valuation techniques, both widely used ones as well as proposed methods to value startups.

The publication is in beta phase: we will regularly update it with new insights and potential corrections under the same link. Because the current economic landscape, we plan on releasing an update as well as new ways to value new ventures in this environment once the future because slightly more predictable.

The book can be used in its entirety, or alternatively readers can access only the practical sections that are relevant to them. I created summaries at the end of each chapter to allow for a faster absorption of the concepts.

If you need ad-hoc consulting, please view our Services page or book a Consulting call.

The Book Chapters are:

Introduction to the Startup Valuation Market: here we review the common practices of negotiations and valuation at the early-stages and whether they are valid or should be changed.
Fundraising Implications: an analysis of how the financial projections and valuation play an important part in planning the company’s strategy and fundraising path.
The Financial Plan: an in-depth analysis on how to project different types of revenue streams, direct costs, customer acquisition costs and other expenses.
Principles of Markets & Valuation: observing the funding market and early-stage valuations, we came up with 5 principles or market laws that startups are subject to.
Startup Valuation: all relevant methods that are used in the market today or in the recent past for the valuation of early-stage startups, as well as new proposed methods.
Special Situations: adaptation of valuation methods for late stage startups, exits, departure of a founder, shareholdings, ESOP and ICOs.

In the end, I share some thoughts on the future and the potential impact of COVID-19 and the lockdowns on early-stage ventures.