Estimeo Venture Capitalmethod

The VC method is a relevant valuation approach as soon as the startup supports some growth and presents a solid business history. It results from the combination of several parameters such as: financial data at time T of the startup, business plan forecasts, financial multiples, and Estimeo pillar scores obtained during the rating process. This method aims to imagine a future scenario of an investor's capital exit within a defined time horizon and depending on the current level of maturity of the startup. A turnover is calculated over this horizon and is applied to a transactional multiple (linked to the sector and the business plan of the startup assessed). The amount obtained corresponds to the valuation of the company at the time of the exit. It must then be updated to deduce the current value of the startup.

Valuationmethods

Direct declarative method

The direct or dilutive declarative method takes into account the entrepreneur's personal expectations...

 

Direct declarative

DCF method

The method of valuation by discounting free cash flow, better known under the anglicism "discounted cash flows"...

 

Discounted Cash Flows

VC method

The VC method is a relevant valuation approach as soon as the startup supports some growth and presents a solid business history...

 

Estimeo Venture Capital

Scorecard method

The ScoreCard method, or “Bill Payne Method” after its theorist, is based on Estimeo's pillar scoring...

 

Scorecard

Comparative Market method

This method developed by Estimeo presents a logic that is not very different from the ScoreCard method but uses...

 

Comparative Market

Step-Up method

The Step-Up method is only suitable for very young companies (pre-seed and seed), and generates an incremental valuation...

 

Step-Up