When we talk about startups, the common place is to think of innovative products or services, creativity, entrepreneurship and, in some cases, a lot of money involved.
Yes, all of this is part of the universe of these companies, but sometimes we forget that, at the end of the day, the investment needs to show results.
This is where the need to value startups comes in, in order to identify how much the business is really worth.
How is startup valuation done?
Evaluating these ventures is not simple, as they are ghana whatsapp data extremely young initiatives, dealing with never-before-explored markets and new product or service models.
Read also: Learn how to calculate your company's valuation
With the mission of clarifying this issue, an exclusive online class was held for students of the Saint Paul online course platform with Professor Dr. Bruna Losada , vice-rector of the School of Business.
Author of the book “Finanças para Startups: o essencial para empreender, líder e investir em startups”, the professor gave some tips for entrepreneurs who want to deepen their knowledge on the subject - studied by her in her post-doctorate at Columbia University.
Here are some tips to keep in mind when valuing startups:
The inverted logic
In companies considered traditional, valuation is carried out based on numbers from the organization's past, as a way of projecting future results and defining its value.
However, the reality is different when we talk about startups. Because they are very young, there are practically no numbers from the past to be analyzed.
Bruna explains that the secret is to reverse the logic: instead of basing it on what has already happened, define the value based on what has not yet happened. "If you don't have a past, go forward and think: 'what if everything works out?' This is one of the pillars that differentiates startup valuation," she says.
The professor warns that we cannot simply let our imagination run wild. We need to reflect on whether the numbers created for the future are reasonable. "Common sense is one of the main steps in the process," she adds.
After all, what are you selling?
In the old economy, based on industry, the product sold had a unit. In other words, you bought a car, a house or a t-shirt. In the New Economy, based on services, we see this logic changing.
Companies like Uber and Airbnb are examples of this. You don't buy a car or a house, but rather the possibility of taking a trip or living in a certain place for a period of time. The basis of everything is the experience.
This changes everything when it comes to valuing startups. "It changes the notion of your business unit, from a product sales unit to a customer acquisition unit," explains Bruna.
Standard method
We already know that the best way to price a startup is based on the future. Of course, this is not an exact math, but the professor highlights the use of the standard Metrick and Yasuda method, as you can see in the figure below.