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Start-Up Valuation Methods

Cost-to-Duplicate

As the name implies, this approach involves calculating how much it would cost to build another company just like it from scratch. The idea is that a smart investor wouldn't pay more than it would cost to duplicate. This approach will often look at the physical assets to determine their fair market value.

The cost to duplicate a software business, for instance, might be figured as the total cost of programming time that has gone into designing its software. For a high-technology startup, it could be the costs to date of research and development, patent protection, and prototype development. The cost-to-duplicate approach is often seen as a starting point for valuing startups since it is fairly objective. After all, it is based on verifiable, historic expense records.

The big problem with this approach—and company founders will certainly agree here—is that it doesn't reflect the company's future potential for generating sales, profits, and return on investment. What's more, the cost-to-duplicate approach doesn't capture intangible assets, like brand value, that the venture might possess even at an early stage of development. Because it generally underestimates the venture's worth, it's often used as a "lowball" estimate of company value. The company's physical infrastructure and equipment may only be a small component of the actual net worth when relationships and intellectual capital form the basis of the firm.

Avocet,

Just for you dear

How do investors value a pre-revenue company?

Early-stage founders are often more focused on the mission than the metrics. Many investors on the other hand will expect strong proof of potential before they part with any cash.

Investors will want to see the proposed valuation justified by both quantitative and qualitative data. Quantitative data is the objective fundamentals of your company. It includes financial modelling and forecasts, market size and user growth. Qualitative data is more subjective – for example, the strength and expertise of your team and your overall vision.

Obvious Recal wants back in cheaper

And the buying continues despite all the endless nay sayers who still haven't worked this out..lol

Dusty just my opinion based on the history here and really poor volume of test numbers and income, it cannot survive if it carries on the way it is, it has to find another way and directors are just trying to keep their jobs any way they can

Suggest you read my earlier post, the funds are there to keep the company alive for 6 months while the director work out a way of getting others to take the products under licence or buy them out

Really is shocking the way some MMs operate

I see alot negativity from advfn trolls but then I only read BBs over there as its not worth engaging with them.

AT least there will not be any speeding tickets here, looks great

Best bet for OBD is either

1 A licencing deal

2 Sale of either CIRT or PSE Tests

3 Takeover if they put themselves up for sale.

That's why they only raised enough cash for half a year of ops

BP Ask Avocet, he loves a pull back

Just looks like profit takers and stale bulls exiting to me, some long termers in this have not been able to sell any shares due to the MMs not allowing any volume and prices were shocking for ages, its no wonder sellers have popped up today

They just raised enough to keep going for the foreseeable:

In order to support its own working capital, Catenai has entered into Loan Agreements with certain existing shareholders and a new party to provide £100,000 in loans on the following terms:

● An arrangement fee of 10% of the loan commitment ("Fee") added to the loan balance.

● No interest charged until 1 November 2025 by when it is expected that the loan will have been repaid, if not thereafter at 0.5% per calendar day, on the outstanding balance.

● Immediate advance of £10,000 due by 31 January 2025 with nine additional monthly drawdowns of £10,000 from January 2025.

Never shorted anything ever and never will

Avocet well that's you told I guess....kinda of Karma for me of course and you know why.....

Cash burn is over £1m a month here, I give it 6 months before another placing

What about the people who support the £10m fund raised and price they paid for shares?

Tyke,

Absolutely 100% it helps, really appreciate your guidance here (and from others too).

Been in a few micro cap pharmas and tech plcs and this seems a great combination of both drugs and technology to service the medical environment.

Company desperately needs to get some licencing deals in place for their tests to be carried out by larger players

Trouble is the tests are not validated so it's a tough sell to proper regulated markets like the UK and USA but maybe others are not so fussy

Soul,

Hate to say but I think you're right mate, another diamond in the rough