There is no right or wrong way to value a business. Unfortunately, it’s highly subjective and the ways of valuing a business have been widely debated.
As a starting point, we suggest looking at similar businesses in your market to see how they’ve been valued. As well as the sector, you’ll also need to take into account the stage and growth of your business.
Whilst we do not offer advice on valuing your business, we recommend remaining conservative. The lower your valuation, the more potential upside for investors, and the greater interest your pitch will receive. You’ll also need to consider how your valuation may affect future funding rounds, as overvaluing your business may make future funding rounds more difficult.