Investment Precision Valuations
Unlock the True Value Behind Every Investment Precision Valuations for Angels, VCs & Private Equity Firms
- Angels, VCs & Private Equity Firms
- Valuations for Investors
Introduction
Many investors whether angel, VC or private equity face a common challenge: when you’re evaluating a target company, what is its true worth today, and what levers affect upside and risk? A robust, independent valuation helps sharpen decision-making, avoid overpaying (or under-negotiating), and structure investments more intelligently.
As an IBBI-registered valuer firm with strong expertise in startups, growth companies, complex instruments and regulatory compliance, My Valuation is well positioned to partner investors through this journey.
In this case-study we will walk through:
- how an engagement is initiated
- what investors hope to achieve
- how My Valuation works step-by-step
- how the output (valuation report + advisory) gives advantage to the investor
- service offerings you provide (relevant to investors)
- why choose you (your differentiators).
We will use three investor archetypes Angel, VC, Private Equity to illustrate how the process is tailored.
Investor Archetypes & Their Needs
1. Angel Investor
An angel investor often invests relatively early in a startup, maybe pre-seed or seed stage. Key concerns: high risk, uncertain track record, controlling dilution, participation rights, future growth potential, exit horizon. They need to understand how to value a company whose financial history might be limited. They also want to know what multiple or milestone makes sense for their stake.
2. Venture Capitalist
A VC invests in a high‐growth startup, possibly Series A, B, C. Their concerns: scaling, unit economics, growth runway, exit environment, dilution across rounds, preferred vs common rights, instrument structure. They need a valuation that reflects growth potential, risk, exit assumptions and complex securities (convertibles, warrants, etc.).
3. Private Equity Investor
A PE investor may invest in a more mature business (growth stage, turnaround, carve-out) or may buy majority stake. Their concerns: stable cash flows, EBITDA multiples, exit path, governance, operational improvements. They need thorough due-diligence, comparable transactions, downside cushion, and a clear value for negotiation.
Engagement Process: From Initial Consultation to True Value Handover
Here’s the typical flow when My Valuation works with an investor. For clarity, we label phases.
Phase 1: Pre-engagement / Initial consultation
Applying the Black-Scholes Model requires professional judgment and technical accuracy. At MyValuation, our experts ensure the following aspects are carefully handled:
- Investor (AI/VC/PE) identifies a target company or maybe a portfolio company that needs a fresh valuation.
- They approach My Valuation. At this stage your firm conducts a free initial consultation (or low-cost discovery) to understand:
- Who the investor is and what their role/rights will be in the investment (e.g., equity type, voting rights, convertible note).
- The target company: stage, industry, financial history, growth plan, instrument structure, exit horizon.
- The purpose of the valuation: is it for negotiating the new investment round? For internal decision making? For regulatory/compliance documentation?
- Time-frame constraints and budget. Many investors have tight timelines (“we must commit by date X”).
- You present a proposal: scope of work, methodology, deliverables (valuation report + advisory), timeline, fees.
- When accepted, you sign an engagement letter (clearly defining roles, data access, confidentiality, deliverables).
Phase 2: Planning & Data Collection
- My Valuation assigns a lead valuer and team; the investor is introduced to the team.
- A project plan (milestones, deliverables, responsibilities) is agreed.
- You request the required data from the target company (via investor or directly): historical financials (income statement, balance sheet, cash flows), budgets/projections, cap-table, rights/privileges of existing securities, operational metrics, market/industry data, growth plans.
- You ask for contractual documents: shareholder agreements, convertible notes, warrants, shareholder rights, potential exit or IPO scenarios.
- The investor may also provide their own expectations: e.g., “we want to see what valuation gives us 3× return in 5 years at exit multiple of 8× EBITDA” (for PE) or “we believe the market is underserved and want to check a premium can be justified” (for VC).
- You also map out any asset/intangible items (brand, technology, IP) and note potential adjustments (non-recurring costs, founder compensation, synergies, risk factors).
Phase 3: Analysis & Valuation Modelling
My Valuation conducts deep dive:
- Review historical and current financials; adjust for non-core items, normalize earnings.
- Analyse growth drivers: market size, competitive landscape, customer acquisition cost, churn, lifetime value (for tech/startup).
- Identify risk factors (market risk, execution risk, regulatory risk, instrument complexity).
- Select appropriate valuation methods. For instance:
- For a startup (angel/VC) you might use DCF (discounted cash flows), comparable transactions, venture capital method, considering growth and dilution.
- For older business (PE) more reliance on EBITDA multiple or market comparable.
- Use hybrid methods: asset approach (for IP/technology heavy), market approach, income approach.
- Where instruments are complex (convertibles, warrants, ESOPs), you model their effect on dilution and investor returns. My Valuation expressly notes that they have expertise in convertible securities, derivatives and structured products.
You run scenario analysis: best case, base case, worst case. Provide sensitivity (e.g., if growth slows by 20% what happens).
You check the investor’s value: “if you invest INR X today for Y% stake, what exit value would you need to justify target return of Z× in T years?”
My Valuation integrates the findings into a draft internal model (spreadsheet) and reviews assumptions with investor for alignment.
Phase 4: Draft Report & Discussion
My Valuation produces a valuation report (audit-ready, professionally formatted) containing:
- Executive summary: valuation purpose, key findings, value range.
- Description of the business & industry, growth drivers and risk.
- Financial review & adjustments.
- Financial review & adjustments.
- Results: valuation range, implied multiples, investor ROI scenario, sensitivity analysis.
- Appendices: detailed models, data sources, comparable companies/transactions, instrument schedule, disclaimers.
- Conclusion and recommendations (e.g., negotiation strategy, key value levers, warning points).
My Valuation then schedules a discussion with the investor: walk-through the report, clarify assumptions, answer questions.
If required, you perform a “fairness opinion” or “reasonableness check” for the investor—to confirm the value is fair from the investor perspective (especially relevant for larger PE deals).
Phase 5: Final Delivery & Handover
- After receiving investor feedback, My Valuation issues the final valuation report.
- You deliver the spreadsheet model, supporting materials, assumptions list, and investor presentation (if needed).
- The investor receives a “true value” of the company (or value range) as of the valuation date, along with input on key value levers, risk mitigation opportunities and negotiation levers.
- My Valuation may provide follow-up advisories: e.g., monitoring triggers for next valuation, or suggesting what metrics the startup should achieve to justify the valuation.
- The investor uses the report to:
- set negotiation boundaries (e.g., not pay above top of the range unless special conditions).
- structure the deal (e.g., rights, preference, anti-dilution clauses) knowing how dilution and instrument complexity impacts value.
- build internal case: present to investment committee with independent valuer backing.
- monitor investment over time: you may suggest periodic re‐valuations to track value changes.
Phase 6: Post-investment Monitoring & Support (optional)
- After investment, My Valuation can support portfolio monitoring: periodic valuations (quarterly/semi-annual) to track value evolution, refresh assumptions, advise investor and company on metrics to watch.
- For exit planning, My Valuation can assist in preparing for sale or IPO by updating valuations, re-running multiple scenarios, supporting the investor with exit readiness (e.g., what multiple will buyers pay? what value gap exists?).
- In case of follow-on rounds, My Valuation helps the investor assess dilution and impact of senior rounds on their investment value.
How This Process Gives Advantage to the Investor
Clear Value Bench-mark:
By obtaining an independent valuation from My Valuation, the investor gains a credible “bench-mark” of what the company is worth today (or at investment date) and what it could be worth under future scenarios. This helps in negotiations (you won’t pay blindly) and internal decision‐making (investment committee gets independent support).Better Deal Structuring:
Because My Valuation models the effect of complex instruments (convertibles, warrants, ESOPs, preferred rights) and dilution scenarios, the investor is better positioned to ask for appropriate rights (anti-dilution, liquidation preference) or negotiate price that accounts for them. This protects upside and mitigates risk.Focus on Value Levers & Risks:
The valuation process uncovers the key drivers of value (growth rate, margin improvement, customer retention, scalability) and also highlights risk factors (market competition, regulatory risk, execution risk). The investor can focus due-diligence efforts on the key levers, allocate value to upside and budget for mitigation of risk.Transparent Reporting & Audit-Ready Documentation:
My Valuation provides audit-ready valuation reports prepared by IBBI‐registered valuers (compliant with standards) this means internal stakeholders (investment committee, LPs) or external parties (regulators, auditors) can rely on the report. It adds credibility.Time & Cost Efficiency:
Investors often have tight timelines (term-sheet expiry, competitive bidding). By engaging My Valuation, they can secure professional valuation quickly, reduce time spent in internal model-building, free up resources to focus on strategic issues. Also, as opposed to using overly expensive big global consultancies, My Valuation promises cost-effective service (especially tailored for startups and growth companies) while maintaining quality.Enhanced Exit Planning:
The investor gains clarity on what exit value might look like, what multiples will apply, what internal metrics the company must track to reach that exit. This helps in steering the investment, setting milestones, monitoring performance, and preparing exit strategy (for VC/PE).Time & Cost Efficiency:
Investors often have tight timelines (term-sheet expiry, competitive bidding). By engaging My Valuation, they can secure professional valuation quickly, reduce time spent in internal model-building, free up resources to focus on strategic issues. Also, as opposed to using overly expensive big global consultancies, My Valuation promises cost-effective service (especially tailored for startups and growth companies) while maintaining quality.Competitive Advantage:
If other investors are uncertain about the valuation, the investor armed with a credible independent valuation may negotiate more favourable terms or move faster with confidence. It becomes a competitive advantage in a bidding situation.
Services at My Valuation Relevant to Investors
Here’s a summary of your core services and how they map to investor needs:
Complex Financial Instrument Valuation
critical for deals involving convertibles, warrants, structured products common in venture deals.
Why Choose My Valuation? — Differentiators
Here are your firm’s unique selling points (USPs), which substantiate why investors should pick you:
Registered Valuer Credentials
The firm’s valuers are registered under the Insolvency & Bankruptcy Board of India (IBBI) and comply with regulatory standards.
Tailored for Startups & Growth Companies
Many other valuers are oriented to large mature corporates; you are positioned to serve early-stage/startup and SME companies (which is where most angels and VCs operate) so you speak their language.
Cost-Effective & Timely Service
The content emphasises that you provide quick turnarounds and affordable pricing. For example, article on 409A valuations emphasises “Affordable Prices with High-Quality Service” and “Fast Turnaround”.
Focus on Strategic Value Creation
Not just a number, but insights: what drives value, what can be improved, what risk factors exist. This helps investors move from “what price” to “how to win”.
Strong Technical Expertise
Team brings “accounting experience with valuation expertise” and handles convertible securities, derivatives and structured products.
Proven Track Record & Client Base
You indicate working with notable clients (you mentioned names: for example, Alteria Capital Advisors LLP, Antler, Kunal Bahl founder of Snapdeal, Titan Capital, AceVector Group, etc), which lends credibility.
Comprehensive Service Suite
Beyond pure valuation we also provide financial modelling, advisory, virtual CFO services allowing investors to not just value assets but also monitor and improve them.
Transparent & Professional Reporting
The process emphasises transparency, clarity of assumptions, and audit-readiness (important for investor committees), ensuring every valuation stands up to scrutiny and inspires investor confidence.
Tailored Scenarios for Each Investor Type
Here’s the typical flow when My Valuation works with an investor. For clarity, we label phases.
- 1. Angel Investor Scenario
- Target: Early-stage startup (Seed round)
- My Valuation engagement: Startup Valuation service
- Deliverables: Valuation range, dilution modelling, investor return projection (3–5 years), key value levers
- Advantage: The angel can negotiate on a credible valuation, secure rights, and set milestones aligned with value growth and follow-on rounds
- 2. Venture Capitalist Scenario
- Target: Growth-stage company (Series A/B) with convertible notes, warrants, ESOPs.
- My Valuation engagement: Business Valuation + Complex Instrument Valuation + Financial Modelling.
- Deliverables: Detailed model showing equity value, scenario sensitivity, impact of future funding rounds, exit analysis, instrument dilution.
- Advantage: The VC understands how future rounds will affect their ownership, how much value must be created to deliver target return, can negotiate preferred rights accordingly.
- 3. Private Equity Scenario
- Target: Mature business, maybe a carve-out, leveraged buy-out scenario.
- My Valuation engagement: Business Valuation for Fundraising/Acquisition + Due Diligence Support + Exit Planning.
- Deliverables: Valuation based on DCF, comparable transactions, EBITDA multiples, sensitivity to operational improvements, exit multiple assumptions, post-acquisition synergy value.
- Advantage: The PE investor gets a robust value base, understands where the value can be built, sets realistic return targets, negotiates acquisition price accordingly, and monitors value creation post deal.
Key Milestones & Timeline (Illustrative)
Here is a typical timeline (can be compressed or extended depending on complexity):
- Initial consultation, scope & engagement letter.
- Data collection kick-off (investor + company)
- Financial review, initial modelling work
- Draft model & internal review
- Draft report shared with investor, discussion of assumptions
- Final report delivered, presentation to investor, handover of model
- Post investment: Optional monitoring follow-up every 6-12 months
Because My Valuation emphasises timely delivery and cost-effectiveness, investors benefit from quicker turnaround (compared to large firms) which is crucial in fast-moving deal environments.
Practical Tips & Best Practices for Investors (and You)
- Provide clean, well-organised data early: the faster you get financials, projections and cap-table, the quicker the valuer can work and the better the outcome.
- Clarify your investment horizon, return target, exit assumptions and rights structure upfront this helps tailor the model.
- Discuss upfront which instruments exist or will be issued (convertibles, options) so that dilution is modelled correctly.
- Use the valuation not just as a number, but as a decision-making tool: what can the company do to move from say INR 100 crore valuation to INR 300 crore in 5 years? Which metrics matter?
- Monitor value creation: after investment, revisit key value levers quarterly/semi-annually to make sure things are on track.
- Use the valuation report in your internal governance: present to your investment committee, attach as part of deal folder, use for investor communications.
- Be aware of exit market conditions, multiples and comparable transactions: Your independent valuer should help you calibrate these.
Summary & Call to Action
By engaging My Valuation, investors (angels, VCs, PEs) get a tailored, credible, independent valuation process that adds value well beyond just a number. It equips them to invest smarter, negotiate better, monitor performance and plan exits proactively.
Key differentiators: registered valuer credentials, deep technical expertise, startup/growth company focus, cost and time efficiency, transparent and advisor-style partnership.
If you’d like, My Valuation can prepare a customised investor-facing brochure or slide-deck (for your website, pitch or investor committee) summarising this value proposition and the step-by-step engagement for AIs/VCs/PEs. Do you want me to prepare that?