BPM’s Kemp Moyer explains the importance of startup valuations in his latest article for Young Upstarts.
Across the nation and the world, thousands of tech startups hope to follow in the footsteps of tech giants, looking for investors who can help provide the capital to grow the business. It takes time – and significant capital – for a tech startup to grow, and it’s critical for entrepreneurs to have a fair-market value of the business. In his article for Young Upstarts, BPM Partner Kemp Moyer writes, “Developing a defensible valuation at key points along the way is one critical element of becoming the next notable venture-funded startup story.
Kemp reviews the most common methods to calculate a startup’s value: cost-to-recreate valuation; market approaches; and valuations after early-stage priced funding. However, he warns, “Given the nuance in the process, it is important to rely on qualified experts to help properly develop a supportable value estimate.”
BPM: Your Partner in Growth
From startup valuation and debt and equity financing, to financial statement preparation and internal accounting controls, BPM’s accounting and advisory professionals have the talent and resources technology businesses need to help drive sustainable growth. In a crowded marketplace, we distinguish ourselves with our extensive experience with companies of all sizes and at all stages, ranging from venture-backed startup companies to multinational public corporations.