When preparing for fundraising, investors expect founders to present a well-supported valuation backed by industry benchmarks and financial projections. The Venture Valuation Tool (VVT), powered by Equidam, provides a quick, data-driven way to estimate your startup’s worth and refine your funding strategy.
This guide will walk you through how to use the Venture Valuation Tool in four short steps, ensuring you enter investor discussions fully prepared with a clear valuation narrative:
Step 1: Access the Venture Valuation Tool
- Log in to VC4A: Ensure you have an active venture profile. If you don’t have one, create your venture profile here.
- Navigate to the valuation tool: Find the Venture Valuation Tool under the fundraising tab of your venture profile, here.
Watch the walkthrough video before starting. It provides a step-by-step guide on how to input data and interpret your valuation results.
Step 2: Input your venture information
The valuation tool requires a few essential details about your startup. Ensure your financials and projections are up to date before proceeding to ensure a more precise estimate. You will enter details into the tabs marked as follows:
- Venture basics
- Venture stage
- Venture operations
It is important to enter accurate information. Investors look for defensible numbers, so ensure your inputs align with industry benchmarks.
Step 3: Generate your valuation estimate
Once you input your data, the Venture Valuation Tool, powered by Equidam will process your information using five internationally recognized valuation methods, including:
- Discounted Cash Flow (DCF) with Long-Term Growth: Evaluates cash flow projections.
- Scorecard Method: Compares your startup to similar businesses.
- Risk-Adjusted Return Method: Weighs industry-specific risks.
- VC Method: Estimates your valuation based on potential exit value.
- Berkus Method: Applies industry-standard early-stage benchmarks.
The tool instantly calculates a blended valuation, offering a balanced estimate of your startup’s worth. For further insights, you can read about Equidam’s valuation methodology here.
Step 4: Use your valuation in fundraising
Your valuation estimate can be integrated into:
- Your pitch deck’s financials slide to justify funding needs.
- Investor conversations to support equity negotiations.
- Business planning to set realistic financial milestones.
Founders who approach investors with a well-researched, data-backed valuation are more likely to secure favourable funding terms.
Special offer: VC4A members receive a 10% discount when they proceed to Equidam for an in-depth valuation analysis. Click here to claim your exclusive discount and access advanced valuation insights.
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