It's the Best Time for Any Startup to Fulfill Their Dreams Many investors value startups based on the number of the startups investors want or need.
By Nidhi Singh
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How do investors value their potential startups? Many investors value startups based on the number of the startups investors want or need. Valuation of a startup is a significant part that a founder always has in his mind. Valuation matters to investors as a startup company's value is largely estimated by the market forces in the sector in which it operates.
The Vault by Jatin Goel has been conceptualised as more than just another opportunity for investment for aspiring entrepreneurs. It allows promising start-ups from across the country, as to pitch their business models and give a chance to secure their investments .
Entrepreneur India caught up with Rahul Singh, CEO, The Beer Cafe, who shared a range of key factors that can affect the valuation of a startup.
Apart from leading India's favorite Beer Chain, he is an active Angel Investor and Mentor to food startups such as Biryani Blues, Burger Singh and Yumchek.
" Valuation of a startup is based on various factors like scalability, where they stand on that stage of their journey, where they are going to go from there, how will they use the funds and lastly, whether the proceeds will be used. So it's not simple to answer how to evaluate valuation. It takes a bit of diligence and bit of thought behind before you actually decide on what valuation is? ," he said.
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"There is always a gap in any market and any entrepreneur who creates a market in that gap is a true entrepreneur. And that is what I urge that we are on the right cusp of where India's growth is," he added.
Singh feels it is the best time for any startup to fulfil their dreams and create the market in the existing gap to become the winners.
To know what Singh has more to say on the valuation of startups, watch the video.