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UpValuations startup valuation approach

How Upvaluations treat the valuation process.

UpValuations is based on a combination of 5 valuation methods that are compliant with the IPEV (International Private Equity and Venture Capital Valuation) guidelines. We selected these methods because they allow the valuation to be adapted to the different stages of development of startups.

The valuation methods used are widely known and accepted, although there are other valid methods and even investors can use their own experience and investment philosophy to carry out the valuation. Some methods such as the Scorecard or the Financing round are more suitable for (very) early-stage companies, while other methods are more suitable for more mature business models.

Qualitative information is more important in the early stages as a detailed business plan is usually not available and revenue and cost estimates cannot be made with any level of certainty. This is why methods such as the Scorecard or Financing round become more important in this situation.

As the business matures, the company has a track record which makes the quantitative information more reliable and therefore more weight can be given to the two DCF methods.

As for the VC method, it is in the middle of these extremes, as it reflects the investor's view and serves to balance the valuation in intermediate scenarios.

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UpValuations is based on a combination of 5 valuation methods that are compliant with the IPEV (International Private Equity and Venture Capital Valuation) guidelines.