Free tool: Startup valuation calculator (VC method) — Work back from an exit to today's pre- and post-money valuation.
Valuation
- Methods — discounted cash flow (DCF), comparable companies and transactions, and the VC method for early-stage companies.
- Pre-fundraise valuation for equity, SAFE / CCD and CCPS instruments.
- FEMA pricing — fair value for issue or transfer of shares involving non-residents (see FC-GPR and FC-TRS).
- ESOP valuation and 409A advisory for US-parented companies.
Due diligence
- Sell-side — getting your company ready for investor or acquirer diligence.
- Buy-side — financial, tax and regulatory diligence on targets.
- Quality-of-earnings, working-capital and compliance reviews.
Deal structuring
- M&A deal structuring and SPA review from a finance and tax perspective.
- Earn-outs, deferred consideration and escrow structures within FEMA limits.
- Post-deal integration of finance, reporting and compliance.
Frequently asked questions
Which valuation method is used for early-stage startups?
Early-stage companies are often valued using the VC method or comparable transactions, supported by a DCF where there is a credible forecast. For regulatory purposes (FEMA, income tax), the prescribed methods and valuer qualifications must also be met.
Why do I need a valuation for foreign investment?
Shares issued to or transferred with non-residents must meet FEMA pricing guidelines — broadly, issue or transfer to a non-resident at not less than fair value, and transfer from a non-resident to a resident at not more than fair value.
What is sell-side due diligence?
Sell-side diligence reviews your own company before investors or acquirers do, so issues in books, tax, contracts or compliance are fixed or disclosed on your terms.