Business Valuation for Investment and Fundraising.
A credible valuation is the foundation of every successful funding conversation. We help founders, directors, investors and acquirers arrive at a realistic, defensible valuation before investment terms are negotiated.
Pre-money valuation is what the business is worth before new investment goes in. Post-money valuation is the pre-money figure plus the investment — and that is the figure that determines what percentage of the company the investor receives. Getting both right is essential to fair, sustainable funding rounds.
— 04 — Detail
Risks of overvaluation
Failed negotiations and lost rounds
Investor mistrust before you even start
Unrealistic growth expectations baked into the deal
Future funding problems and down rounds
— FAQs
How do you value a business for investment?
Usually a combination of earnings multiples, revenue multiples (for high-growth or pre-profit businesses) and discounted cash flow, benchmarked against comparable transactions.
What is pre-money valuation?
The value of the business immediately before new investment is added.
What is post-money valuation?
Pre-money valuation plus the amount invested. It defines the investor’s percentage stake.
Do you help investors review a valuation?
Yes. We provide independent reviews of valuations on behalf of investors looking to validate or challenge a founder’s number.
Can you value a business before fundraising?
Yes — most of our investment-focused clients come to us before they go to market, to anchor their range and prepare their narrative.
Take the next step
Find out what your business could be worth before buyers do.
If you are considering a sale now or in the next few years, a confidential valuation call can help you understand where you stand, what buyers may look for, and what could improve your outcome.
