Case Number :NIBM-CDC-2023-03
Publication Date :April 21, 2023
Financing startups is a matter of interest to many stakeholders including investors, entrepreneurs, financial institutions, government and policy makers. One major concern for the investors is determining the stake they can claim from the investee company as consideration for their investment. Similarly, the entrepreneurs of the startups have to decide on how much of the stake in the investee company they can part with in favour of the investors. Valuation of startups will address the concerns of both the investor and the entrepreneur and will lead to striking a deal between the two. This case demonstrates valuation of startups and addresses the basic issues and steps to be followed in valuation of startups.