A business valuation report is prepared to accurately describe and evaluate the value of a company or its assets while considering all market, industrial, and economic factors relevant to the startup or SME. read more about it here- https://www.salt.pe/blog/business-valuation-report Salt is a fintech startup based out of Bangalore, helping businesses thrive in the international market with effortless international payments and the compliances. Read more about Salt here: https://www.salt.pe

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Startup Fundraising
Key Points to Keep
in Mind Before

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Whether Company’s
Sector is Hot or Cold
If a company specializes in an industry or sector that is redundant or
cold, the potential investors can draw their hands back.
A company thriving in a booming industry or a hot sector holds a higher
chance of getting funding and even sometimes premiums from investors.

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Marketing Strategies
At the initial stage, the companies searching for seed funding have
no products or services available for sale.
However, the management team has to decide the marketing strategies
beforehand to assure the investors of trusted distribution channels that
are efficient and serve a large mass of target customers.
The investors can get an insight into the growth of the business.

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Is the Business
Prototype Ready?
A prototype is the basic model of the product or service the startup aims
to provide and is tested in real-life scenarios to gauge its validity & usability.
Designing an ideal prototype is a major factor in gaining investors’ interest.
Hence, before presenting your pitch to the investors, double-check
your prototype.

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Relevance to Market Trend
Another important factor to consider is the market trend, that is, whether
the product or service is in demand by the customers.
Does the startup promise traction? If the company holds traction, it shows
that the growth and development of the business are likely to move upwards
on the chart, which is a plus point for the investors.

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Founder’s Image
Investors might also be interested in the reputation and the public image
of the company's founders.
A good and positive image of the founders sheds a healthy light on
the business and may attract investors.
For example, a serial entrepreneur with a successful company launching
another startup will gain positive responses from the investors

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SWOT Analysis
An in-depth SWOT (strength, weaknesses, opportunity, threat) analysis
performed by the management team of the company will give a thorough
idea of the business.
The management team can glean an idea of where the company stands
in the market and what it is actually worth and value it accordingly.

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Comp Analysis
Investors may use comp or comparable home analysis to understand
the value of the startup by comparing it with companies that are similar
in size, location or of the same sector or industry of their company
to calculate its standing in the market.

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Competition
If the startup is a hot sector model with innovative ideas, maybe ones
that have never been heard of, there might be a hoard of investors looking
for stakes in the company.
In such a case where there is high competition in the deals offered by
the investors, the founder holds leverage and can negotiate the amount
of investment, thus increasing the value of the company.

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Valuation is crucial for every startup or SME, for it helps them decide
the amount of equity the early-stage founders need to give
to venture capitalists and angel investors.
Table by SALT provides solutions to entrepreneurs and founders
to get their valuation report prepared diligently while making sure
fundraising and compliance are sorted in a hassle-free way.