Valuation of a start-up

Abstract

India is the third-largest start-up ecosystem globally, with 51 unicorns and 38K+ active startups at the forefront of the internet revolution in India. Valuation is vital to every start-up as it helps decide the equity an entrepreneur has to give to an investor in exchange for requ ired funds. This implies that if a company has a higher valuation, it must give an investor a lesser amount of equity or shares in exchange for seed investment. Not only for entrepreneurs, but start-up valuation is also vital from investors' point of view because it helps them gauge the returns for their investment.