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Tarun Vidhani | Finance | Mutual Funds
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Day
2
of
decoding
startup
terminologies...
How
do
founders
come
up
with
such
hefty
valuation
?
Basically
there
is
no
right
or
wrong
formula
to
calculate
a
proper
business
valuation
and
it's
always
a
negotiable
thing...
Typically
founders
calculate
the
valuation
by
applying
a
multiplication
factor
to
their
annual
revenue.
It
ranges
somewhere
3x
to
10x
of
the
revenue...
And
then
they
use
many
factors
to
justify
this
valuation
like
they
quote
-
1.
Annual
run
rate
(ARR)
2.
Founders
education
3.
Founders
experience
4.
Competition
5.
Market
size
6.
Repeat
rate
7.
EBIDTA
margin
If
you
want
to
know
more
details
on
any
of
these
topics,
let
me
know
in
the
comments
section...
#sharktank
#sharktankindia
#businessreels
#casestudy
#marketing
#valuation
#Entrepreneurship
#Money
#MoneyMatters
#HipiMoney
#HipiFinance
#HipiFunds
#FinancialTips
#HipiFinance
#FinanceonHipi
#Hipi
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