Optimizing Fintech Startup Seed Funding Valuation
Keywords:
Startup, Startup Valuation, Financial Technology, Discounted Cash FlowAbstract
The advancement of technology and the utilization of smartphones result in ease of doing financial accountability, which will be stored in it. With the help of a Point of Sales machine that comes in a traditional calculator to record the sales, will provide more convenience for monger to have an immediate and easy financial record of transactions. SAUDAGAR is a fintech startup founded in 2019 tries to help to address and solve these issues with that solutions, increasing the capabilities of SMEs to be more bankable and able to grow and sustain. Nevertheless, without any income, they are still in the seed stage and need some money to fund their activities. They, therefore, need to find an appropriate source of funding to support their company. This research aims to consider SAUDAGAR value to be a bargaining power in the quest for capital and the real source of financing for it. From the assessment of five valuation methods, the results show Berkus Method generates a USD 1,150,000 valuation, Scorecard Methods generates a USD 5,049,816 valuation, Risk Factor Summation methods produces a USD 4,362,692, Discounted Cash Flow method shows a USD 3,462,812.59 valuation, and Venture Capital method create a USD 186,676 valuation. To the seed-stage startups such as SAUDAGAR, Berkus, Scorecard, and Risk Factor Summation system is superior to the following two approaches, DCF and VC, due to the lack of financial record.
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