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Frequently Asked Questions (FAQ)

Here are the most commonly addressed questions about Valufy’s platform and services:

Platform

Valufy is an online platform that simplifies company valuation, especially for early-stage startups. We leverage cutting-edge artificial intelligence (AI) to provide objective, fast, and accessible company valuations. Valufy goes beyond basic valuations by offering a unique combination of quantitative and qualitative methods, alongside valuable tools for both entrepreneurs and investors. Our platform streamlines the pre- and post-funding process by offering standardized valuations and an innovative negotiation bridge between investors and entrepreneurs.

Valufy empowers a wide range of users in the startup ecosystem:

  • Entrepreneurs: Gain objective valuations to guide fundraising efforts, understand your company's true worth, and prepare for investor negotiations with confidence.
  • Institutional Investors:Utilize AI-powered valuations to make informed investment decisions, benchmark potential investments against industry standards, and leverage our platform for efficient deal-making.
  • Individual Investors: Conduct preliminary investment research with basic valuation tools and educational resources.
  • Intermediary Institutions: Streamline funding processes for startups with standardized valuations and prepare entrepreneurs to face investors well equiped. (crowdfunding platforms, incubators, accelerators).

Pricing

Valufy offers a variety of subscription plans to suit different needs. Here's a quick overview:

  • Standard PlanPlan (150 USD/month): Unlimited editing for a single venture, 2 report versions, basic access to advanced modules, and a discount on approved valuations by human experts.
  • Pro Plan (Introductory Offer: 500 USD till year-end): Unlimited editing for a single venture, unlimited report versions, advanced modules access (Tier 2), 30-minute online mentorship consultation, and access to new tools.
  • Enterprise Plan(Custom Quote): Ideal for institutional investors and intermediaries. Includes unlimited ventures, advanced modules (Tier 3), free access to new tools, portfolio management tools, and more. Contact us for a quote.
  • Angel Plan(9.99 USD/month): Designed for individual investors to track their investment portfolios.

The Freemium plan offers a basic level of functionality, allowing you to:

  • Create an account and explore the platform
  • Conduct a one-time valuation

Paid plans unlock a wider range of features, including:

  • Unlimited valuation report generation
  • Access to advanced features like the Interactive Approval Mechanism and Post-Funding Connection Platform
  • More granular control over company profile details
  • In-depth valuation reports with additional data points
  • The ability to collaborate with multiple users on your company profile

We recommend exploring the Freemium plan to get a feel for the platform before upgrading to a paid plan that best suits your needs.

We accept most credit card programs and wire transfers. Please refer to our checkout page for most up to date payment alternatives available.

Valuation Process

Valufy's AI-powered algorithm analyzes various factors to deliver comprehensive and accurate market valuations for your startup. Here's a breakdown of the process:

Data Collection:You'll provide essential details about your startup, including industry, stage, location, financials, and qualitative information about your venture in details.

Multi-Method Analysis: Valufy's algorithm leverages a combination of quantitative and qualitative approaches to create a well-rounded assessment:

Quantitative Approaches

  • Venture Capital (VC) Method: This method estimates your company's future value based on potential exit scenarios like acquisition or IPO. Valufy factors in market trends and industry data to calculate a realistic future value. This future value is then discounted to arrive at a present-day valuation for your startup.
  • Discounted Cash Flow (DCF) Method: This method, suitable for startups with a track record of revenue generation, estimates your company's value based on its projected future cash flows. Valufy considers factors like revenue growth rate, profitability margins, and industry benchmarks to determine a present value for your future cash flow stream.

Qualitative Approaches:

Valufy Scorecard: This method goes beyond financials and assigns points based on crucial factors for early-stage startups. The weights assigned to each factor reflect their relative importance in determining the startup's value. Once scores are assigned, they are multiplied by their corresponding weights and summed to arrive at a final score. This score is then used to adjust a benchmark valuation (median valuation of similar startups in the region and industry) to arrive at a final pre-money valuation for the target company. These factors include:

  • Experience and capabilities of the team
  • Size and potential of the target market
  • Competitive landscape
  • Product/market fit
  • Partnerships and Traction
  • Financing Need

The MaxBlock Method: Inspired by the original Berkus Method, the method offers a framework for valuing startups based on the concept of building blocks that contribute to a company's maximum potential pre-money valuation. This method leverages a benchmark to establish a realistic maximum pre-money valuation for a highly successful startup in the same industry, region and stage.

  • Five critical criteria are identified that represent essential building blocks for success.
  • Each criteria is assigned a weight reflecting its relative importance in determining the overall value.
  • The maximum valuation for each block is calculated by multiplying the overall maximum pre-money valuation benchmark by the corresponding weight.
  • The startup's score for each block is then multiplied by its respective block's maximum value, resulting in a point contribution for each block.
  • The point contributions from each block are then summed to arrive at the final pre-money valuation for the startup.
Risk Factors Adjustment:

Building upon the qualitative assessments provided by the Scorecard and MaxBlock methods, this method incorporates an exogenous risk adjustment to account for external factors that may impact the company's future performance. While the Scorecard and MaxBlock methods focus on the company's internal strengths and market potential, this section acknowledges the influence of broader economic, technological, and industry-specific factors.

Inspired by the Risk Factor Summation method, we evaluate eight key exogenous risk factors that can significantly impact the success of a company in a given industry and stage. The pre-money valuations obtained from the Scorecard and MaxBlock Methods are then adjusted by the risk factor discount. This adjustment reflects the potential impact of external risks on the startup's ultimate value, refines the valuation and ensures a more realistic picture.

Final Valuation Report:

You'll receive a clear and concise valuation report that details the methodology used, key valuation drivers (including the scorecard results and MaxBlock factors), and the estimated market value of your startup. The report will also outline the limitations of the valuation and the inherent uncertainties involved.

A Valufy valuation report provides a comprehensive overview of your startup's estimated market value. Here's a breakdown of the key components:

Company Overview: A summary of the information you provided about your startup, including industry, stage of development, location, and team experience.

Valuation Result: A concise overview of the valuation methodology used, key findings, and the estimated market value of your startup

Valuation Methodology: A detailed explanation of the quantitative and qualitative approaches used to determine your valuation, including:

  • Breakdown of the Venture Capital (VC) Method and the factors considered (market trends, industry data).
  • Explanation of the Discounted Cash Flow (DCF) Method (if applicable) and the factors used to determine the present value of your future cash flows.
  • Description of the Valufy Scorecard Method and the factors assessed (team experience, market potential, product traction, etc.).
  • Explanation of the MaxBlock Method and how each block contributes to a higher valuation.
  • A description of the unified risk factor discount applied to qualitative methods to account for market and industry risks.

Financials: Financial projections of Income Statement and Cash Flow together with last available Balance Sheet of the company.

Disclaimer:A statement outlining the limitations of the valuation and the inherent uncertainties involved.

Appendix:A detailed explanation of all the assumptions and parameters used in each valuation method.

Valufy's AI-powered algorithm is constantly learning and improving. By leveraging a combination of established valuation methods, market data, and industry trends, Valufy strives to provide accurate and reliable valuations. However, it's important to remember that startup valuations are inherently subjective and can be influenced by various factors beyond the scope of an automated system.

A Valufy valuation report can be a valuable tool to initiate fundraising conversations. It demonstrates your professionalism and provides a starting point for negotiation with potential investors. However, investors may also consider other factors beyond the valuation report, such as your business plan, team capabilities, and market opportunity.

Valufy's platform allows you to refine your company profile and update relevant information. You can then regenerate your valuation report to see if the adjustments impact the outcome. Additionally, Valufy offers a Freemium plan that allows you to conduct a one-time valuation. You can use this as a baseline comparison and consider seeking support from Valufy experts or professional valuation services for a more in-depth assessment.

Future of Valufy

Valufy is committed to continuous improvement and innovation. Here's a glimpse into the future:

We're excited to see how Valufy can empower the next generation of entrepreneurs and revolutionize the way startups are valued.

Limitations and Disclaimers

It's important to understand that Valufy's valuations, like any automated system, have limitations:

We're excited to see how Valufy can empower the next generation of entrepreneurs and revolutionize the way startups are valued.

Valufy's valuation reports include disclaimers that clearly outline the limitations mentioned above. Additionally, the reports emphasize that:

Support

Valufy offers a comprehensive Help Center with detailed articles, tutorials, and FAQs to guide you through the platform and answer common questions. Additionally, you can contact our support team via email or live chat if you require further assistance.

This concludes the comprehensive FAQ for Valufy. We trust this information empowers you to leverage Valufy's features and navigate the startup ecosystem with greater confidence. If you have any further questions, please don't hesitate to contact our friendly support team.