Startup Funding Espresso -- Financial Projections: Valuation
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. For later-stage startups with revenue, one can use the financial projections to estimate the company\u2019s valuation for fundraising purposes.\xa0 Discounted cash flows, called the DCF method, values the company based on future cash flow projections.\xa0 This weights the value of the company on future revenues rather than today\u2019s revenues. The DCF method is purely a financial valuation method and does not take into account other factors such as the team, intellectual property, or sales activities that have not yet been realized with cash flows. Your financial projections should have the key elements including projected cash flows, a chosen discount factor, and a net present valuation of the free cash flows to generate the DCF valuation. It\u2019s just one more valuation tool. Predicting cash flows in the future can be difficult given the sales process is not fully in your control. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today.-----For more episodes from Investor Connect, please visit the site at: Check out our other podcasts here: For Investors check out: For Startups check out: For eGuides check out: For upcoming Events, check out For Feedback please contact info@tencapital.group