What are the Inputs required from the user?

  • +/- 40 inputs allocated over three (3) sections:
    • Fundamentals: General information about the business.
    • Financials: Financial information about the business.
    • Financials: Financial information about the business.
    • Transaction: Information about the deal with potential investors. Namely, whether you’re raising money or selling the business.
  • Below are examples of the quantitative inputs:
    • Revenue: Total sales, contract’s value or sum of invoices you're expecting to make by end of the current and 2 next calendar years.
    • Costs Total operational costs, cash outflows you're expecting to burn by end of the current and 2 next calendar years
    • Funding: The amount of external funding your business plan requires to be executed. i.e. the financial resources required to attain the revenues over the next 2-3 years as you've stated in the Financials section.

What is the output I get after finishing the valuation process?

  • You first get to discover how much your business is worth today.
  • Then you instantly get a business valuation one pager report “InstaPager”, including detailed valuation, cap table, financial analysis, and more.

What is the Methodology?

InstaVal uses a proprietary data driven approach based on universal corporate finance, machine learning and investment analysis concepts and principles. We use valuation methods utilized by professional business appraisers and promoted by the IPEV standards on the premises of Fair Market Value (FMV).

The Fair Market Value (FMV) is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. Below are the 3 approaches we used in our methodology:

  • Market Method: Method of determining the appraisal value of an asset, based on the selling price of similar assets
  • Income Method: Quantifies the present value of anticipated future income generated by a business or an asset.
  • Asset Method: Type of business valuation that focuses on a company's net asset value, or the fair-market value, of its total assets minus its total liabilities to determine what it would cost to re-create the business.

My company is pre-revenue. Is InstaVal suitable for me?

Yes. Yet, you’d need to have your homework done for inputs. Otherwise, we’re happy to help out.

Last updated: January 2020