Definition : Start up

A start-up is a young company, recently created and generally evolving in the field of new technologies. The number of new start-ups is constantly increasing, with a number that evolves by 20% every year and is now estimated at more than 10,000.

Why value a start-up?

Valuing your start-up initially allows you to give credibility to your approach when raising funds or applying for bank financing. 

A valuation will also be requested in the case of a purchase or sale of the start-up. 

How to value a start-up ?

As start-ups don't really have a track record (financial, etc.), the valuation methods used will be based on estimates over the coming years. The main method used is the DCF free cash flow method, which estimates the start-up's future financial flows. 

The strength of a XVAL valuation is the delivery of a detailed and documented report within 3 days, justifying the methods and assumptions used (EBITDA restatement, coefficient...) which will be the basis for discussions with the buyer, the banker.

If you wish to promote your start-up, do not hesitate to contact one of our experts: contact a XVAL consultant.