Valuation of start-ups is a foundational element in its journey from inception to growth and beyond. Besides the recurrent need for various funding rounds, a start-up may also need valuation for crafting an exit strategy or equity allocation or for benchmarking to self-assess & improve.
Saksham has provided valuation services to more than a dozen start-ups and one of them has gone on to become a unicorn.
It is a given that factors such as limited financial history and/or uncertain cash flows, lack of comparable, heavy reliance on intangibles, use of non-standard metrics etc. make valuation of start-ups complex and challenging. It demands a flexible valuation approach and a deep understanding of the unique circumstances of each start-up.