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Comparison of Pre-revenue Startup Valuation Methods Case Study: Kubu

Anisa Anisa Eka Destiyana, Taufik Faturohman

Abstract


Abstract. Adapting with the digitization phenomenon around the world, PT. Telkom Indonesia, Tbk (Telkom) established Indigo Creative Nation (Indigo) as the center of startup development in Indonesia. Indigo as investor applies “fixed valuation” principle for the startup that lies in the first three stages. However, this “fixed valuation” principle cannot be applied to the startup in the fourth stage namely market validation (MV) because the value of startup is varied. Whereas, this startup value affects the funding decision made by Indigo. Therefore, this research aims to provide several alternatives of the pre-revenue startup valuation methods that can be considered by Indigo to be implemented. All those methods will be given based on the literature review, startup circumstances, and Indigo’s expert approval. These alternative methods will be exercised to the one of the startups in Indigo that will enter into the MV stage, namely Kubu (not the real name) and thus, this research also aims to estimate Kubu startup value. The alternative methods in this research are Berkus, Risk Factor Summation, and Scorecard. Each method estimates the startup value by analyzing several key factors that related to the startup risk of success. The range value results from those methods are 3,786,057,692-9,375,000,000.

Keywords: Startup Valuation, Seed Stage, Digital Business, Cyber Security, Indonesia

 


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