You may have heard the term
startup Unicorn, which is a term for startups with a valuation of above US $ 1
billion. But the question is, what exactly is the meaning of startup valuation?
How to calculate it?
Definition of startup valuation
Valuation is the economic value
of a business. If there is a company that has a valuation of Rp1 trillion, then
anyone who wants to fully acquire the company must prepare a minimum of Rp1
trillion. This valuation figure is usually used as a reference to measure how
much a company’s business potential is.
As a startup founder, you need to
calculate valuations to determine the percentage of shares that will be given
to investors when funding occurs. This valuation is also important to determine
the selling price of your startup in the event of a merger or if there are
other companies interested in acquiring your startup.
Startup valuation versus conventional business
The startup valuation calculation
method is actually similar to conventional business. However, because startups
in the initial stages usually don’t get any revenue or profit (which is usually
the basis of valuation calculations), there needs to be a slight adjustment.
To calculate the valuation of a
conventional company, the following things are usually taken into
• Company value on the stock
market (market cap).
• Value of other types of shares
owned by the company (e.g. preferred shares, minority interest).
• Company debt.
• Company cash.
From these variables, company
valuation can be … Read More
There are no magic tricks in
business. The secret that all Entrepreneurs need to know is that no success
wheel can be bought, everything is created and built with hard work alone. Most
young entrepreneurs only dare to start businesses that 98% already believe they
will not bring problems and only focus on overcoming the 2% likelihood of
problems that will arise.
Any business now makes a website
as a must have, including new business people. A cool website that some of them
didn’t expect would cost quite a lot of money and time. For the sake of getting
this cool website, sometimes Entrepreneurs even make it a show off compared to
product promos. Until in the end, if the cool website is ready, they are too overwhelmed
to promote the website compared to the product. In fact, using a Facebook or
wordpress fanpage even Twitter and Instagram accounts are much wiser because
they do not spend much time or money. The way to promote it is also easier and
very fast developing.
The purpose of doing business is
to get money. Unfortunately, young entrepreneurs are often trapped to raise the
price of goods as high as possible in order to get even more profits. Instead
of busy raising prices, sometimes Entrepreneurs forget to improve product
quality and innovate.
The fear of creating products that are not in
the market’s interest is one of the biggest fears of Entrepreneurs. Even though
the method is quite simple, just sell … Read More
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If … Read More
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Investment trusts are Public Restricted Companies (PLCs) that are listed on a inventory change, so buyers buy and promote from the market. UITFs present access to financial instruments not available to retail buyers. You’ll be able to see which asset class, or asset classes, an investment trust specialises in earlier than you make a decision on whether or not to take a position your cash.
It might be a wiser move for a lot of investors to buy much less complicated investments, such as U.S. Treasuries. The funding belief trade is way smaller than its more mainstream open-ended rival. As investment trust shares are listed on the London Inventory Alternate, their prices are … Read More