‘Price is what you pay, value is what you get’ – Warren Buffet
Startup valuation is part science and part art, especially at an early stage with the aim of converging price and value. Our model aims to simplify valuation especially in emerging markets ‘primarily Africa’ where data is limited. We hope this assists both investors and founders when brainstorming about funding.
Positive Synergies: The pre-money valuation is a derivative of your own efforts without external funding, which if received should create much more value than the current post-money valuation with time. The external funding will help you capture more market share than you can capture with your own resources and this is how startups create wealth for both founders and investors. Please note that price is what you pay, value is what you get and we do not guarantee that the two will converge at any point in the future as much depends on your execution skills! Our calculations are simply for guidance purposes based on your own assumptions.