QBT10 Jan 2024 18:55
Hope you don’t mind me using your post, it sums it up perfectly much appreciated.
ThePain
Posted in: QBT
Posts: 27
Price: 1.475
Buy
A gentle reminder of measuring value9 Jan 2024 07:33
Ip man, you need to educate yourself, here's a reminder for you.
There is a misconception by some here about the process of valuing a start up enterprise.
For those that don't understand that a company with no current, but projected or potential income can have commercial value, there are thousands of examples. In fact, the whole process of 'going to the market' i.e IPO or placings is what the market is for.
There have been countless examples of companies with huge values that have yet to reach an income stream to traditionally value it as a 'mature'company.
Anyone that doesn't understand this really shouldn't be investing in aim (or NASDAQ) as this is predominantly the place for such companies.
Examples of methods to estimate a pre revenue validation include, but are not limited to:
Your Team
Size of the Opportunity
Number of Paying Customers
Earnings and Profitability
Industry Life Cycle and Trends
Traction
Reputation
Amount and Frequency of Capital Raised
What’s more, the industry you enter may significantly influence the valuation of your startup. Popular and booming industries have more interested investors (and at a premium) than if you are entering an old industry or one that has little room for meaningful innovation
For those concerned, that qbt is some kind of anomaly, they should research the following. (This will also help with future investment decisions, maybe it will make you decide that aim is too confusing, especially if you cannot understand that pre revenue companies can have value).
Discounted Cash Flow Method
Venture Capital Method
First Chicago Method
Comparable Method
Risk Factor Summation Method
Scorecard Valuation Method
Berkus Method
Cost-to-Duplicate Method
Asset Valuation Method
Adjusted Net Asset Method
Earnings-Based Valuations
Cheers gla