Ten³

Business e-Coach: Yourself   Your Business    Management    Innovation    Venture Financing    Tech Transfer    Green Productivity

Home    Search    Site Map    Slide Shows    MBS    Case Studies    Model Agreements    Links    Contact us

See also:

Valuation Quantification Techniques

Business Valuation: How Much is Your Business Worth?

Valuation of start-up companies is highly subjective. It is rather art than science. Proper valuation of the entrepreneurial business is the seminal event in the corporate maturation process however and it becomes an absolute requisite when the entrepreneur wants to raise private or public capital. Once the company is properly valued, then the entrepreneur can determine how much of the company can be sold for the capital injection provided by the investor or venture capitalist. No matter how enthusiastic each party seems, it always comes down to valuation.

The  most common start-up business valuation approaches include:

1. Cost approach (uses the valuation information to restate the asset at fair market value)

2. Market approach (gathering data to value developing assets; uses actual market derived data, comparing and correlating subject company to market comparable)

3. Income approach (connects data to value of developing assets).