Popular valuation software Valutico introduces new Venture Capital (VC) method to allow valuations of mid- to late-stage start-ups
Valutico Launches New Startup Valuation Method
LONDON, Aug. 18, 2022 (GLOBE NEWSWIRE) — Valutico has once again made finance professional’s lives easier by announcing the launch of the 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.
CEO of Valutico, Paul Resch, stated:
“We’re extremely excited to announce the new VC method as part of Valutico’s ever-expanding toolbox. We’re particularly happy that this represents a significant increase in our offering for Venture Capital and Corporate Finance firms across the 70 countries Valutico is already being used in. With all the calculations and relevant data in one place, the VC method will help make these types of mid- and late-stage start-up valuations much easier.”
One difficulty with valuing start-ups is that they have less financial history behind them. 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).
VC firms invest in start-ups to gain a return on their investment, whereas M&A and Corporate Finance firms are interested in valuing new businesses with growth potential for a wide range of reasons. With Valutico’s new development, practitioners can quickly perform a VC valuation based on EV/Sales, EV/EBITDA, EV/EBIT and P/E multiples as a useful addition to other research on the company and the industry. With a highly active start-up sector, even within an uncertain economic climate, valuing new businesses remains a vital task for a wide range of finance professionals.
More information can be found at valutico.com/vcmethod
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About Valutico: Valutico is a popular web-based valuations platform providing the financial services industry with data-driven tools to conduct company analysis more efficiently. With 26 leading valuation methodologies, and by saving agents time transferring results from spreadsheet to slides, Valutico is carving a new generation in valuations.
Image 1: Valutico Launches New Startup Valuation Method
Valutico Launch of VC Method for Valuing Startups
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