Valuation for an investment round.

Why founders anchor on Valuion

Most founders set their pre-money valuation by one of three methods: (1) asking a friend who raised recently, (2) working backwards from how much they want to raise and how much dilution they’ll accept, or (3) picking a number that feels right. All three produce numbers, none produces a defensible number.

Investors notice the difference. The founder who says “we’re raising at $12M pre-money because that’s what our friends at Company X raised at” signals inexperience. The founder who says “we’re raising at $12M pre-money; here’s our DCF with scenarios, here are the three comparable-company multiples I applied, and here’s why I weighted them this way” signals investability.

What the Detailed report gives founders

The Detailed report applies four methodologies and delivers:

• A revenue-multiple valuation using industry-specific multiples from Damodaran NYU Stern data
• An EBITDA-multiple valuation (if you’re profitable) with adjustments for growth stage and margin quality
• A discounted cash flow with explicit 5-year forecast, terminal value calculation, and WACC build-up
• Best-case, base-case, and stress-case scenarios showing how valuation shifts with assumption changes
• An 8-driver value-builder assessment identifying which of the value drivers most affect your multiple
• A 2-page executive summary you can attach to your pitch deck

Investors are used to seeing pitch decks with a single “we think we’re worth $X” slide. Attaching a 2-page summary with methodology signals that the founder is thinking seriously about valuation, not just quoting a number.

Jurisdiction-specific considerations

Some jurisdictions have formal valuation requirements for share issuance that Valuion doesn’t replace:

• United States: §409A valuations for common-stock issuance in cap tables must be prepared by an independent qualified valuer (Scalar, Carta, Aranca). Valuion reports support the fundraise conversation but are not 409A-compliant.
• United Kingdom: HMRC advance assurance for EIS or SEIS eligibility typically requires a qualified share valuer for complex cap tables. Valuion reports are fine for the pitch; not for the HMRC submission.
• Ireland: Revenue approval for EII scheme purposes similarly may need a qualified practitioner if the share valuation is challenged.
• Australia: Tax-advantaged ESS schemes require ATO-recognised valuation methods for formal submissions; our report isn’t safe-harbour compliant but is useful for pitch support.

For the investor conversation itself, there are no jurisdictional rules. Founders raising in any market use Valuion the same way: to anchor and defend their pre-money number.

How this affects your negotiation

Two founders with identical businesses raising on identical terms will often end up with meaningfully different outcomes, depending on how they negotiate. The founder with a methodology-grounded valuation has:

• A credible floor. When an investor offers below your number, you can discuss specific assumptions – growth rate, terminal multiple, size adjustment – rather than arguing by feel.
• A better understanding of what’s driving the number. If an investor claims your terminal multiple is aggressive, you know immediately whether they’re right.
• A more productive due diligence process. Investors’ analysts spend time on the assumptions that matter; you’re ready to discuss each.

This is why most founders who raise seriously from institutional investors eventually get to a document like this. Valuion just gets you there before the first pitch, not after the third rejection.