Potential investors are able to question or challenge a company's valuation by either contacting the founders directly through the pitch page, or posting a question in the pitch forum. Should the consensus of the potential investors be that the valuation is too high, the company has the opportunity to lower this while the pitch is live.
Firstly, please note that whilst we do provide guidance on valuations, it is the company’s decision to price their investment offer and ultimately the crowd then decides if they are willing to invest at that price.
There is no right or wrong way to value a business. The process is highly subjective and the ways of valuing a business have been widely debated.
For the businesses raising funds on Crowdcube, we suggest looking at similar businesses in their market to see how they’ve been valued. As well as the sector, we also suggest they take into account the stage and growth of their business.