Valuation of a Pre-Revenue Startup: The Case of a Philippine Software Company

Asian Trade Association Pub Date : 2022-12-30 DOI:10.22447/jatb.9.2.202212.27

Cris Edwin B. Bonalos, D. Depositario, Normito R. Zapata Jr.

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Abstract

Purpose - This study aimed to valuate a pre-revenue software startup in the Philippines by applying various valuation tools. Also, it aimed to verify these tools’ advantages and disadvantages in the context of a pre-revenue startup. Design/Methodology/Approach - The study employed a case study approach. Valuation methods used were the Venture Capital Method, Chicago Method, Development Milestone Method, and Cayenne Consulting Calculator. In performing these methods, quantitative and qualitative data were used. Such data were mostly provided and validated by the company’s executive management or offices. Findings - Based on the comparisons made among the pre-revenue valuation methods, the Chicago Method is determined to be the most recommended method. This method considered various factors relating to where the company is currently, and weighed different scenarios the in which the company could be. Research Implications - Further research on possible strategies for the startup’s sustainability and survivability is recommended. Such strategies may include further evaluating and recalibrating operations, and sourcing capital from angel investors.

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一个未盈利的创业公司的估值:一个菲律宾软件公司的案例

目的-本研究旨在通过应用各种估值工具对菲律宾的一家收入前软件初创公司进行估值。此外，它还旨在验证这些工具在盈利前创业背景下的优缺点。设计/方法/方法-该研究采用了案例研究法。使用的估值方法有风险投资法、芝加哥法、发展里程碑法和卡宴咨询计算器。在执行这些方法时，使用了定量和定性数据。这些数据大多是由公司的执行管理层或办公室提供和验证的。研究结果-基于收入前估值方法之间的比较，芝加哥方法被确定为最推荐的方法。该方法考虑了与公司当前位置相关的各种因素，并权衡了公司可能出现的不同情况。研究意义-建议进一步研究创业公司的可持续性和生存能力的可能策略。这些策略可能包括进一步评估和重新调整业务，以及从天使投资者那里获得资金。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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Asian Trade Association

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