Entrepreneur Early-Stage Valuations
Early-stage valuation is both important and difficult. In many cases, a company fills the funding gap to commercialize the early-stage concept from external investors. It is crucial that you know the value of your concept. You only get one chance in front of investors—it is prudent to put your best foot forward.
Many firms do not adequately address this market need. First, they’ve generally never run businesses themselves, so they lack the important perspectives of the business owner. Second, they try to shoehorn traditional business valuation methods into the space, relying on gross, top-down valuation methodologies, which investors don’t believe. Nor should they. The financials must demonstrate that your plan is reasonable and achievable, which a top-down approach can’t do. The investors look to the next deal.
At Pellegrino & Associates, we’re different. We work in concert with you to identify the useful life of your idea and quantify, from the bottom up. From there, we build a comprehensive valuation model, complete with investor summary worksheets that describe your concept’s value proposition succinctly. Finally, we stress your valuation model with sophisticated simulation techniques. We show you the statistical distribution and probability for your concept’s value and its key value drivers.
Want to know how much cash you’ll need, and when? Want to know how many people you will need to hire and when? Want to know the value impact of not having a completed business plan? We can tell you.
In addition, our team includes members who have been engineers and business owners. We’ve been through the early-stage and product life cycle ourselves, so we know how to efficiently get to the heart of your concept’s value. What’s more, we’ve spent years working with the investment community to develop a presentation format for your concept that is most meaningful to investors. It works. Most of our clients have received funding after going through our process.
Contact us to learn more about our Entrepreneur Early-Stage Valuations.