Toptal

In 2019 we are seeing some famous private startups finally list themselves public through the IPO process. Company valuation at this stage of a company’s life can be a grey area and I often encounter situations where there is confusion over which method is most appropriate. Since you are not publicly traded, you cannot rely directly on the market. So, what can you do? And how can you come to terms with investors?

Understanding company valuation, either your own or your client’s, is key in your ability to close a good deal. It will affect your investor returns, corporate governance, ability to hire and retain talent, and your ability to raise future rounds.

Ultimately, your valuation will end up being the result of negotiations. It will be what investors are willing to pay for, based on their quantitative and qualitative assessment. Finance is no science. Nonetheless, the more you can

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