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Seed Capital Financing Valuation of Data Analyst Startup: SMART Case

Regita Rismadhanti, Ahmad Danu Prasetyo

Abstract


Abstract. A Start-up in seed stage only has prototype and lack of financial record because it has not generate any revenue yet. S-MART as a start-up founded in 2018 that tries to help warung managing the stocks, shorten the distribution channels and organizing the financial record and stocks ordered through digital platform for warung, so that they will have a competitive advantage. However they are still in the seed stage and need to find a suitable source of financing to support their business. This study aims to help S-MART estimate the enterprise value in order to be a bargaining power in the attempt to look for capital and the suitable source of financing for them. This study uses two valuation methods which are Berkus and Scorecard methods. The data collected was from the interview with the CEO of S-MART, SMART’s investors intended, and find the similar start-up financing deals as comparable data. The results show Berkus method generates USD1,526,500 and Scorecard method shows USD 1,333,240. For a seed stage start-up like S-MART, Berkus and Scorecard are more preferable due to the absence of financial records that makes it difficult to determine the right input factors such as growth rates, cost of capital, and other fundamental financial assumptions for estimating future financial projections.

Keyword: Start-up Valuation; Seed Stage; Berkus Method; Scorecard Method

 


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