Valuation of start-ups and early-stage ventures
Valuation of technology and innovative companies
We value start-ups and other early-stage investment projects, including technology and innovative companies.
An early-stage company has no stable earnings history, so its value is determined by its future potential and the probability of achieving its development goals.
Finappraisal values start-ups for investors, founders and their teams
Funding round
Pre-money and post-money valuation of the company to determine the investor's stake and the entry price
Convertible loans
Calculating the terms for converting a loan into a stake and the value of the stake at the conversion date
Share option schemes
Value of stakes and options for incentive schemes for founders and key employees
Transactions between participants
The buyout price of a stake when a founder or investor exits and when stakes are redistributed between partners
Contribution of intellectual property
Valuation of technologies and software contributed to the charter capital
Business plan for an investor
A financial model and business plan with calculation of returns and investor exit scenarios
We apply the methods accepted for early-stage companies: the venture capital method, under which the value at the investor's exit is discounted at the target rate of return; discounted cash flows under several scenarios weighted by their probability; and comparison with the prices of recent funding rounds and transactions with comparable companies. The business model, stage of development, team, technology, market potential and funding requirements are analysed.
The valuation report is prepared under Federal Law No. 135-FZ "On Valuation Activities in the Russian Federation" and Federal Valuation Standard FSO No. 8 "Business Valuation" and sets out a reasoned conclusion of value with supporting analysis for negotiations with investors.