We're sometimes asked if LivePlan can help calculate the valuation of a company. This is outside the scope of the app, because valuation involves many variables, and is very different for start-ups vs. existing businesses. In addition, no matter what method you might use to estimate a future valuation for your company, investors will make their own conclusions based on their experiences.
For a real-world explanation of why valuation calculations can be tricky, read our founder Tim Berry's article, Looking for Investment? Understand Startup Valuation.
Further reading about valuation
Here are some more helpful articles from Tim Berry, who has worked with valuations as both a business owner and an angel investor:
- Getting Investment, Key Factor: Initial Valuation
- 10 Rules for Valuation
- You Can Take Your IRR and Shove It (An angel investor's real-world take on IRR estimates)
- 5 Lessons "Shark Tank" Can Teach You About Pitching to Angel Investors