Singapore Entrepreneurs Network & Startup Organization

I am unsure of how to use any formula to value a start up....
it seem you are using the Financial Analysis method of Present Value and Future Value method with time and interest to work on....

I use simple maths....

correct me if my methods make any sense....
for a start up business, I will check on the Assets, Liablities, Sales Forecast and Marketing Efforts to justify the value at any given time....

For simple illustrations, to value a company in 5 years,
I will look at the Net Assets, Sales Forecast and Marketing Plan and Startegies from Year One to Year Five, every year....

Welcome, Allen....
Thanks for the feedback....

There is no hard and fast rule in valuing a business(at least from what limited knowledge I got)....
I learnt myself from various sources from books to real life experiences....

If the FV method make sense to you and you can justify the interest or CAGR used and the PV with figures and forecasts in your computations in your business, then you are absolutely correct....

There might and might not have any difference in valuation of your start up before or after investment....
It will depends what and how you are going to use the money in the investments into your business....
It might increase or decrease and even have no impact of your valuation....

As for CAGR, I will not say what growth rate is normal for a typical start up in the first 5 years....
At the same time, you might want to look at these variables to determine your own CAGR: business nature, business model, industries, sales and marketing plans and forecasts, and your financial reports....

You should be looking at the range of 5-20% for a healthy start up....