Valutico has launched a new Venture Capital (VC) method for valuing start-ups, available for the first time within its online platform.
Valutico has launched a new Venture Capital (VC) method for valuing start-ups, available for the first time within its online platform.
Although there are more than 4,000 active VC firms globally, valuing start-up companies remains problematic because traditional valuation methods don’t always work. Valutico’s team has developed an online solution that incorporates data from over 50,000 peer companies and hopes to help overcome this issue faced by valuation professionals around the world.
As some recent start-up valuations are falling amidst investor caution, this new development comes at an opportune time to positively impact how effectively financial firms value young businesses. Already helping more than 450 financial firms perform over 10,000 valuations each year, Valutico’s new development also opens the door for valuing loss-making businesses, for which the VC method is also apt.
In contrast to other techniques, the VC method focuses instead on the VC firm’s desired rate of return as a key component of the valuation, and so allows new businesses that may still be loss-making to be valued more effectively than with traditional methods such as a discounted cash flow (DCF).
