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Industry Jargon Sometimes industry jargon is confusing for us too. We have pulled together a dictionary to help you navigate confusing terms and phrases. Crowdfunding A method of raising funds through smaller contributions on a larger scale. Contributions are typically made prospecting customers or... Write-off A write-off is used to revalue an asset. This is typically done to reduce the value of the said asset. Warrant A warrant is the right to purchase stock at a fixed price (also know as the 'strike price') at a later date. This is a similar concept to... Warrant Coverage Warrant coverage is an agreement between a start-up and one or more shareholders where the start-up issues a warrant (see warrant ) equal... Vesting Vesting is the process of scheduled issuing of shares or share options for employees for an agreed period of time. This is to ensure that... PLG Product-lead growth is a growth strategy whereby the product itself is the main influence in obtaining and retaining customers.... Start-up Advisor Typically a group or an individual that provides advice when presented with challenges. A good trait to look for is a track-record of... Convertible Note A financial instrument that enables an individual or firm to loan money to a company, this can convert into equity at a later date... Washout Round A funding round where existing shareholders experience significant dilution. Often, the new investor(s) will gain a significant or even a... MVP An acronym that stands for Minimum Viable Product is typically the first release of a product or service that achieves the basic goals or... NPV An acronym for Net Present Value. The NPV represents the total value in a potential investment opportunity. Limited Partner Individuals who invest in a VC fund are known as Limited Partners Lead Investor “A lead investor is the investor that bring the most capital to the table and hence, sets the terms of your round, mainly its price, its... Assets Under Management A single market value of all the assets held by a client but is managed by mutual funds, venture capital firms, or brokers. ESG Investing Used to refer to investments that focus on environmental, social and good governance. This can include socially responsible investing,... Decacorn A new term that is given to relatively new firms that have a valuation of over $10 billion. See our video on Unicorn to see the difference! White Label Solution A product or service that can easily be re-branded, without changing the fundamental function performed. Broker An intermediary that is typically an individual or firm that aids with the exchange between investors and securities (e.g. start-up equity). Due Diligence A process whereby both parties verify the applicable information related to a deal between said parties. Capitalisation Table A capitalisation table is an overview of a company's share ownership by all share-holders. Carry The net return as a result of holding an asset. This could be negative or positive depending on the asset and the current market that the... Options Options are the right (not obligation) to purchase a number of shares at a pre-agreed price. Options are an increasingly popular part of... Bridge Loan A short term loan designed to be used by firms or an individual during the period prior to securing long term or sustainable payment. Venture Capital A form of funding from an individual or firm into a fast-growing emerging business with a goal of return on investment. These investments... Syndicate A group of individuals or organisations who collaborate together in order to achieve a shared goal. In an investment sense, this would be... Incubator A space where startups can operate during their initial conception and tend to focus on innovation with no set goal or direction.... Startup Accelerator Programs and mentorships designed to provide resources, training, and networking to aid the fast-growth startups. Don’t forget, there is... Unicorn A company that achieves a valuation of $1 billion or more. Often confused with a Decacorn Term Sheet A document that is designed to highlight the main terms of an agreement and any conditions attached to it. Within the context of... Article of Association A legal document that details the responsibilities and actions planned to be undertaken by a firm. Fintech FinTech is a technology used for the delivery of financial products and services. Provided by: Sarah Williams-Gardener, Head of FinTech... Angel Investor An individual who is willing to offer financial backing or seed investment in return for a share in the company (Also known as an Angel... Ship Shape helps you find the right VC investor in seconds, not months Book a call today

Brilliant ideas need smart money Empower spin-outs. Find domain expert investors. View Pricing Identify VC investors through content most relevant to your business niche Empower spin-outs with self-serve access and ensure they are commercially successful Leverage your institutional network and deliver warm intros How Ship Shape can help you Find specific investors your spin-outs should be talking to Find similar organisations that have been funded Use your organisation’s network to facilitate warm introductions Make faster commercialisation decisions with market intelligence Deliver spin-out returns sooner Start using Ship Shape Ship Shape enables me to provide a cutting edge to the investors I support. It's a search engine that helps me and my team create significant value, faster Ian Tracey Co-founder, Anchored In Check out an example of a popular search for investors by domain: Agricultural Robotics Help spin-outs execute faster Start using Ship Shape Latest Insights Jul 27, 2023 3 min read Building relationships in Cardiff Apr 7, 2023 1 min read Emergence Global 2023 - Investment Trends Panel Oct 24, 2022 2 min read Celebrations at Ship Shape Ship Shape helps you find the right VC investor in seconds, not months VCs for your spin-outs? Start using Ship Shape

Do more fundraising deals - profitably Qualify deals in minutes. Close mandates faster. View Pricing Identify VC investors through content most relevant to your business niche Reduce the time to find VC invetsors, from months to seconds Leverage your existing network and be connected to the right people How Ship Shape can help you Quickly identify a shortlist of highly relevant investors Take on the right new mandates knowing there is an investor base for them Leverage your organisation’s network to facilitate introductions Increase efficiency & boost revenue by up to £100k per analyst Increase your bottom line Start using Ship Shape Chiene + Tait is delighted that Ship Shape has arrived in the Venture Capital ecosystem that has been crying out for a specialised Search Engine. Executing the right deals well for our clients is the lifeblood of our practice. Partner, Chiene + Tait Paul Mason Check out an example of a popular search for investors by domain: Agricultural Robotics Increase your bottom line Start using Ship Shape Latest Insights Jul 27, 2023 3 min read Building relationships in Cardiff Apr 7, 2023 1 min read Emergence Global 2023 - Investment Trends Panel Oct 24, 2022 2 min read Celebrations at Ship Shape Ship Shape helps you find the right VC investor in seconds, not months Increase your bottom line? Start using Ship Shape

Business ecosytems need smart money Find expert VC investors to support high-growth businesses in your area View Pricing Identify VC investors through content most relevant to your business niche Reduce the time to find VC invetsors, from months to seconds Leverage your existing network and be connected to the right people How Ship Shape can help you Quickly identify a shortlist of relevant investors for businesses you support Ensure your businesses can find the Venture Capital they need to increase high-value job creation Leverage your organisation's network to facilitate warm introduction Ship Shape are building a unique AI-powered search engine that answers a genuine need that no one else is solving Associate Director M&A Growth Advisory, BDO Adam Baron Check out an example of a popular search for investors by domain: Agricultural Robotics Find the right VC Start using Ship Shape Latest Insights Jul 27, 2023 3 min read Building relationships in Cardiff Apr 7, 2023 1 min read Emergence Global 2023 - Investment Trends Panel Oct 24, 2022 2 min read Celebrations at Ship Shape Ship Shape helps you find the right VC investor in seconds, not months Need to find the right VC? Start using Ship Shape

Referral Credit Terms & Conditions Last updated 15th of December, 2022 These terms relate to Ship Shape’s “Referral Credit” Programme (“Programme”). The following terms and conditions apply to your use, and Referred User’s use of Ship Shape’s Programme in conjunction with the services provided by Ship Shape Search Limited (Company Number 12762842), (“Ship Shape” or “shipshape.vc””). You and Referred User agree, by participating in the Programme, that the Programme terms and conditions are in addition to any agreements between Programme participants and Ship Shape including Ship Shape’s Terms of Service and Ship Shape’s Privacy Policy. Eligible Referral Credit as at today’s date: £20 per referred user Definitions: “Referred user” is a user of Ship Shape’s Search Engine that is from an organisation that has not previously accessed Ship Shape’s Search Engine. They must be eligible for, and create, a shipshape.vc account and they must meet shipshape.vc signup requirements including providing LinkedIn details. “Organisation” can be a company, collective, government body, charitable organisation or similar. Users are grouped into organisations by their domain. For example all users with emails of domain @abc.com and/or with organisation website @abc.com would be considered part of the same organisation. Terms and conditions: ​ 1. When you refer a Referred User you will be eligible for credit at the Referral Credit amount. The total value of eligible, and unused, Referral Credit will be tracked and reported to you regularly. Referral Credit will be granted at the time of any eligible future Ship Shape purchase and treated as an automatic invoice discount. ​ 2. Referral Credit can be used towards any eligible future Ship Shape purchase e.g. Any Referral Credit earned from this Programme can be applied to the total original purchase value of leads (excluding tax) to reduce the value of your future lead purchases. Similarly, it can be applied against the cost of advertising with Ship Shape Similarly, it can be applied against billing for Premium Service if applied ​ ​ 3. Ship Shape reserves the right to exclude any customer from being considered to be a New User if they, for example, in the past had a Ship Shape account and was not in good standing with that account as determined in Ship Shape’s sole discretion. ​ 4. Referred User understands that by signing up to use the Ship Shape service directly from a referral, Referred User consents and agrees to the disclosure of having created a Ship Shape account to the person who referred the Referred User through this Programme. ​ 5. Referral Credits from this Programme are one time use only. ​ 6. You will be eligible for Referral Credits under the Programme only if the Referred User signs up to use the Ship Shape service directly by clicking your unique Programme link. If they don't use your unique link, you will not be eligible for your Referral Credits. If you think you are eligible for a Referral Credit that has not yet been recorded then please contact customer support on leads@shipshape.vc so that we can help. ​ 7. If any leads that have been purchased using Referral Credit are returned, the maximum amount you will be refunded is the amount paid for the product, subject to any applicable refund policies. ​ 8. Any eligible Referral Credit is not transferable and not redeemable for cash or any other credit and may not be resold or applied to any previously placed orders. ​ 9. Any eligible Referral Credit may not be used in conjunction with any other Ship Shape promotion. ​ 10. You and the Referred User may be from the same household, provided that the Referred User is not an existing Ship Shape customer. ​ 11. For the avoidance of doubt, you may not refer yourself to also be the Referred User (e.g. by using separate email addresses for the Ship Shape accounts). ​ 12. Ship Shape reserves the right to validate the eligibility of any Referred User with respect to whether they are a New Customer or as otherwise deemed necessary and may determine any Referred User to be ineligible in its sole discretion. ​ 13. Ship Shape reserves the right to modify or cancel the Programme and the Programme terms and conditions at any time without prior notice to you. We will indicate that changes have been made by updating the “Last Updated;” date located above at the beginning of these terms and conditions. If you do not accept any such changes, your sole and exclusive remedy is to cease participation in the Programme. 14. If you or the Referred User breach any of these Programme terms or Ship Shape’s Terms of Service or Ship Shape privacy policy, you will not be eligible for any Referral Credit under this Programme. ​

Understanding Pre-Money Valuation "Pre-money valuation" may sound complex, but it's simple at heart. It just means how much your company is worth before you add external funding or investment. In other words, it’s the value of your startup just before an investor hands over a check. ​ Why does this matter? Your pre-money valuation affects how much of your company you give away when you take on investment. If you value your company too low, you might give away more than you should. Value it too high, and you might not attract investors at all. ​ So, how can a budding tech firm determine its pre-money valuation? ​ Comparables: Look at other similar tech companies. How much were they worth at your stage? This can give you a baseline. However, no two companies are the same. Adjust for your unique situation. Cost-to-Duplicate : Simply put, how much would it cost to make another company just like yours from scratch? This includes costs like software development, hiring key personnel, and acquiring assets. This method, while straightforward, often undervalues the potential and vision of the startup. Discounted Cash Flow (DCF): This method can be a bit more complex. It projects how much money your company will make in the future and then "discounts" it to present day values. The downside? For early startups with no revenue, this is often just guesswork. Berkus Method: Named after Dave Berkus, this method assigns a set value to various elements of your startup, like having a good prototype or an established user base. If you meet these criteria, you add up the values to get your valuation. ​ Remember, no method is perfect. Often, the best approach is to use a blend, being aware of their strengths and weaknesses. Above all, be honest. Inflate your numbers, and savvy investors will walk away. But undervalue yourself, and you risk losing a fair share of your company. ​ In the world of tech startups, knowledge is power. Grasping your pre-money valuation can be the difference between a good deal and a lost opportunity. So, research, be aware, and armed with knowledge, you can walk into investor conversations with a greater degree of confidence.

Searched term >>> digital social care The results below show you the top matched VC digital social care investors. Name: Dr. John Lee Allen John is a physician scientist, engineer, and entrepreneur with a track record across healthcare and technology. He developed an implantable medical device at Oxford University and is a national NHS Clinical Entrepreneur Fellow and Mentor. Firm: RYSE Asset Management Location: London Relevant content >>> "digital social care" Wonderful to work with charity Future Care Capital and colleague Andrew Whelan featured in "This is Money". I particularly enjoyed working with these amazing founders and hearing their views on the partnership Asim Mirza, Firza Group (medication management), Sam Hussain , Log my Care (social care data and management), Ash... View full content Delighted that the DigitalHealth.London accelerator is now in its sixth year and looking forward to meeting the amazing founders! Improving access and reducing the cost of healthcare delivery are some of the hallmarks of digital first care , "To date, the accelerator has supported 122 innovative digital health companies and for every £1 spent on the programme it is estimated over £14 is saved for the NHS". Professor Nicholas Peters , Dr. Vishaal Virani, MBBS , Jenny Thomas, Anna King... View full content Name: Jason Foster Jason is CEO and Executive Director of Ori Biotech, an industrial automation business aiming to endow patients with access to life-saving cell and gene therapies (CGTs). His deep knowledge of the UK, US, and EU healthcare markets is the product of almost twenty years of work in the healthcare sector. He has previously served as a Senior Consultant at Campbell Alliance (now inVentiv Health Consulting), Marketing Director for Europe at Reckitt Benckiser Pharmaceuticals, and General Manager for Northern Europe at Indivior. Whilst at Reckitt Benckiser, Jason reversed a declining revenue trend from -4% to +20% in just two years. Alongside his Chief Executive and ED roles at Ori Biotech, he is currently Managing Director at Health Equity Consulting Ltd. and Non-Executive Director of several healthtech business. Firm: Hambro Perks Ltd. Location: London Relevant content >>> "digital social care" I think this statement is true for both the NHS and the US/UK private sector. “CEOs in the survey expressed a need for further fiscal incentives to encourage (adoption of) digital health innovation .” We need to tilt the risk/reward balance toward more rewards for healthcare stakeholders to take the risk of adopting digital health solutions. View full content #Digitalhealth funding had a wild ride through the first half of 2020. After coming out of the gates quickly with a record $3B in funding in Q1, digital health investment —and overall venture funding—hit the brakes in April as #COVID19 spread rapidly around the globe. But investors came roaring back in May as several regulatory and reimbursement barriers to digital health adoption were brushed aside in a rush to keep #healthcare systems View full content Name: Vishal Gulati Dr. Vishal Gulati focuses on companies at the intersection of data and health sciences. He has played an active role in translating high quality academic research into successful commercial enterprises in Europe. Vishal trained as a medical doctor and a clinician scientist and received his postgraduate medical training in the UK at the Nuffield Department of Medicine (Oxford) and Department of Medicine (Imperial College, London) as a Rhodes Scholar. Firm: Molten Ventures Location: London Relevant content >>> "digital social care" Ieso Digital Health has raised £18m (~24m) in equity financing from my fund, Draper Esprit along with existing investors, Touchstone Innovations and Ananda (Social Venture Fund). The Company plans use this capital to fund further product development and expansion in USA and UK where it is already serving patients. Ieso’s product is unique in being clinically validated in randomised controlled trials and being able to utilise modern analytical technologies to improve outcomes and to reduce treatment length. ​ While improved technology and digital delivery are important for good quality accessible care, there are important aspects of the social and policy environment around mental health which are also playing an important role in how we address this problem... View full content Check out examples of popular searches for investors by domain: Mesenchymal stem cells IVF Treatment Agricultural Robotics Ship Shape helps you find the right VC investor in seconds, not months Start your free trial today

8 Practical And Eye-opening Tips For Actually Finding Investors Guest article by Hatty Fawcett (Focused For Business) Many founders think that finding investors is going to be the hardest thing about fund raising. In reality this isn’t the case. There are lots of tools for helping founders find investors and – on Focused for Business' Funding Accelerator – we even provide founders with a “hit list” of investors who back businesses like theirs that they can reach out too. The hardest thing is generally getting an investor to respond to your social outreach, email, or phone call. They are busy people and will only respond if you entice them with what your investment opportunity offers them. ​ We’ll look at how you engage with investors in the next post in this series. First, we’ve summarised some of the ideas and tips for finding investors that came from our Ideas Swap. ​ Attend industry events​ ​ One of our founders shared that they made first contact with an investor that subsequently invested in their company at an industry event. Investors similar to businesses have to generate deal flow, and if they have an investment thesis or only invest in specific areas e.g. Climate Technologies or Education this means they are likely to attend prominent events in those industries in order to make connections with founders. That’s exactly what happened to one of our Funding Mastermind founders, and it shows how being in the right place and meeting face to face can really help to find investors and build a rapport with them so you have a ‘hit list’ of ‘warm’ investors to approach when you officially launch your funding round. ​ Your close networks ​ Another practical tip shared by one of the founders was to look closer to home, amongst your friends and family. Your own personal network is a great place to start when finding investors, and also to get feedback on your pitch deck and business in general. If there are people in your close networks who have built businesses, raised funding themselves, or are experts in your industry it’s good to start ‘picking their brains’ about different aspects of your business, and asking for feedback on your investor documents e.g. your Executive Summary, pitch deck, or financial forecast. Making people feel connected to your business journey from the start will pay dividends when it comes to opening your funding round. ​ Tap into investor databases ​ There are a number of platforms that can provide data about investments and help identify potential investors; Ship Shape (free), scribe.ai (£ paid), MarktoMarket (£paid) , to name a few. These tools can help you find the names of investors who have invested in companies within your industry recently. One of our founders used these tools to narrow down a list of investors to approach based on their criteria and the minimum average ticket size they generally invested. This resulted in a list of ~400 investors which they then developed a cold outreach strategy to approach. ​ Signup to Newsletters and setup alerts ​ Getting intel on which companies have been funded recently in your sector, who has funded them, and if there are any new funds that have recently closed is a great way of also finding investors. One of our founders shared that they have signed up to as many industry newsletters as possible, and have also set up Google Alerts around ‘funding’ and ‘investment’, to identify potential investors and build out their hit list of people to approach. ​ Utilise LinkedIn Sales Navigator ​ Finding investors can be very time consuming, but LinkedIn is another great resource to find investors that are investing in your industry. It can be used to see the investors associated or following company pages within your industry, and makes it easy to connect with them. One of our founders shared that they have been using LinkedIn Sales Navigator which has made finding investors easier. It allows them to search people and filter by criteria, making it even easier to find investors and build a hit list to contact once they are actively fundraising. ​ Introductions from existing investors ​ A few founders said their first port of call for finding investors for their new funding round was to approach the people that invested in their business in a previous funding round. It’s a logical place to start. Current investors should be approached first to understand if they are willing to provide follow-on funding and exercise their pre-emption rights. As part of that conversation even if they choose not to follow-on, it gives you a good opportunity to ask if they know anyone who may be interested in investing, and if they could facilitate an introduction. ​ Customers and suppliers ​ Engaged users or customers is another place to start finding investors. One of the founders shared how they spoke to some ‘super users’ of their platform, who were so impressed by what they had built that they were interested in backing the company financially. Another founder who operated a Marketplace, also had a similar experience when launching the crowdfunding campaign, they found that both customers and sellers were interested in backing the company financially and participating in the crowdfunding campaign. ​ Startup networking events ​ Last but not least one of our founders said they had success finding investors at startup networking events. Events like these are becoming more and more frequent, and targeted to specific industries or regions. Similar to attending industry events, meeting people face to face is a great way to introduce yourself and your company to investors, and helps to make you more memorable and build rapport with investors which is harder to do via email or on a Zoom call. ​ We hope these tips have sparked some inspiration, and given you some food for thought about how to find investors. ​ Want to understand why a ‘Lead Investor’ is so important, and what value they can give your business aside from just money? Read our recent article: Funding Secrets: Why Having a Lead Investor Makes Fundraising Easier .

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How To Build A Credible Valuation For Your Startup Guest article by Hatty Fawcett (Focused For Business) When raising investment for your startup there are a number of key documents you’ll need - a pitch deck and a financial forecast being the most obvious. You will also need to value your business and indicate how many shares (equity) you are offering in exchange for the investment being sought. Knowing the value of your business requires a deep understanding of your market, business model, and the broader economic factors. In this guide, our friends at Focused For Business , share how to build a credible valuation for your startup so that you have everything you need to get going. The Importance of Valuing a Startup Business ​ The valuation figure of your business acts as a benchmark for your business’s worth, but it also plays an important role in attracting investors and keeping them interested. An unrealistic valuation can put investors off. A well thought out valuation demonstrates your grasp of the market, your businesses potential and the risks involved, which helps potential investors build trust in you and your plans. Whether you're seeking funding from angel investors, venture capitalists, or exploring other avenues, a compelling valuation can be the key that opens the door to the resources and support your startup needs to thrive. What is more, as your startup grows, a regularly updated valuation allows investors to track the progress and performance of their investment, providing them with the reassurance that their trust in your business is well-placed. The Three-Step Approach ​ Focused For Business , who run the Funding Accelerator programme, recommend a three-step process to give you the structure and data necessary to determine a credible and compelling valuation for your business. They teach this - and provide tools that make valuation easy - as part of their programme but they’ve summarised the key points for us here: Theoretical Valuation Methods: A good place to start is by exploring a range of methodologies that provide the practical input and insights you need to assess the market opportunity, monetisation and business model, and the competitive landscape. Using a range of valuation methods such as the Berkus method, the Venture Capital method, a Scorecard Valuation, and a discounted cash flow analysis helps you see valuation from a range of different perspectives. Benchmarked Valuation: Next, you can build upon the theoretical foundations, by benchmarking your startup's valuation against industry comparables, recent transactions, and public market data. By taking a deep dive into comparable company analysis you ensure that your theoretical valuation is not out of kilter with expectations for your stage of development and sector. Grounding your Valuation in the Current Economic Climate: The final step in Focused For Business’ approach to valuation involves placing your startup's valuation firmly in the broader economic context. Factors such as interest rates, market trends, and macroeconomic conditions can influence your startup's perceived value, and push valuations up - or down. If you want to build an investor’s confidence in your valuation you need to compare your valuation to recent valuations. This comprehensive three-step approach gives a well-rounded understanding of startup valuation, which will enable you not only to present a credible valuation to investors, but to have the evidence to back up your valuation and negotiate with investors too. Now you understand the approach we can dig into more detail. Step 1: Theoretical Valuation ​ Berkus Method ​ The Berkus Method of valuation considers five key elements of a startup's potential for success: sound idea, prototype, quality management team, strategic relationships, and product roll-out/sales. By assigning a value to each of these elements based on what has been achieved to date, you can arrive at a preliminary valuation which gives a solid foundation for further refinement. ​ Venture Capital Method ​ The Venture Capital Method is a widely used valuation approach that focuses on the potential future value of your startup. This method involves estimating the future value of your business based on projected cash flows, and then discounting that value to arrive at a present-day valuation. This approach is particularly useful for startups seeking venture capital funding, as it aligns valuation with the rate of return venture capitalists seek to make during the time they back a startup. ​ Scorecard Valuation Method ​ The Scorecard Valuation Method is a more comprehensive approach that considers a range of factors, including your management team, market opportunity, product, and traction. By assigning weighted scores to each of these elements, you can arrive at a valuation that takes into account the multifaceted nature of your startup's potential. To get started, why not answer 10 quick questions to get an indication of your business’ valuation, using Focused For Business’ Valuation Calculator . ​ Step 2: Benchmarked Valuation ​ Building upon the theoretical foundations established in the previous step, the next phase of your startup valuation involves benchmarking your business against industry comparables, recent transactions, and public market data. This step will help you refine your valuation and ensure that it aligns with expectations for your sector and the stage of development of your business. ​ Industry Comparables ​ To start an industry comparables exercise you need to identify startups or companies within your sector that are similar in size, stage of development and business model to your own. We want to compare apples to apples, not apples to pears! Finding comparable data can be hard which is why Focused For Business offers a tool to support this process . Comparable Company Analysis ​ Conducting a thorough comparable company analysis involves delving deeper into the financial and operational metrics of businesses similar to your own. This may include examining factors such as revenue, growth rates, profitability, and other key performance indicators. By understanding how your startup stacks up against these benchmarks, you can refine your valuation and identify areas where your business may be undervalued or overvalued. Challenges and Things to Consider ​ As you navigate the benchmarked valuation process, be mindful of the following challenges and considerations: Data Availability and Reliability: Obtaining comprehensive and accurate data on industry comparables, recent transactions, and public market metrics can be a significant challenge, particularly for newer or less-established startups. Adjusting for Differences: Recognise that no two startups are exactly alike, and adjustments may be necessary to account for differences in size, growth stage, geographic footprint, and other key factors. Timing and Market Conditions: The broader economic climate and market conditions can significantly impact the valuation of your startup, so be prepared to adjust your benchmarked valuation accordingly. Qualitative Factors: While quantitative data is essential, don't neglect the importance of qualitative factors, such as your management team, brand reputation, and strategic partnerships, which can also influence your startup's perceived value. ​ Using a tool like Focused For Business’ Benchmark Assessment helps overcome some of these issues saving you time and money. Step 3: Valuation Grounded in the Current Economic Climate ​ When building a credible valuation for your startup, it is crucial to consider the current economic climate. This step ensures your valuation is realistic and reflects the current market conditions that can significantly influence your startup's value. ​ Why the Economic Climate Matters in Startup Valuation ​ Ignoring the economic climate can lead to overvaluation or undervaluation, either of which can be detrimental! A valuation that is too high may scare away potential investors who see it as unrealistic, while a valuation that is too low can leave you undervaluing the progress you have made and with insufficient capital to grow your business. Therefore, understanding and integrating economic factors into your valuation process is essential for accuracy and credibility. ​ Factors Influencing the Economic Climate ​ Market Trends: Identifying and understanding current market trends is essential. This includes technological changes, regulatory updates, macroeconomic factors such as the COVID-19 pandemic, and shifts in consumer behaviour. For instance, a surge in remote work technologies due to the pandemic has driven higher valuations for startups in this sector. Interest Rates: Higher interest rates increase the cost of capital, leading to lower valuations. Conversely, lower interest rates reduce the cost of borrowing, which can boost valuations. It is important to track interest rate trends and incorporate them into your valuation model. Investor Sentiment: Investor confidence can significantly affect valuations. In a bull market, investors are more optimistic and willing to invest at higher valuations. In a bear market, pessimism prevails, and valuations tend to be lower. Gauging investor sentiment helps in adjusting your valuation to reflect market realities. ​ It isn’t always easy to know how to interpret these trends which is why startups on Focused For Business’ Funding Accelerator programme gain free access to a specialist database that not only provides the information needed to ground a valuation in the current economic climate but also gain guidance on how to interpret and benchmark their analysis. ​ Bringing it all together ​ The best way to develop a credible valuation for your startup is to use a three-step approach: Theoretical Valuation Benchmarked Valuation Grounding your valuation in the current economic climate. ​ This approach not only builds credibility with investors but, in so doing, also increases your chances of attracting and securing investment. A well-rounded valuation method shows investors that you have a deep understanding of your business and the market environment, making your startup a more attractive investment. ​ If you need help in valuing your startup, a good place to start is at one of Focused For Business’s free Funding Strategy Workshops .