The “VALUATION” Rule v/s The “VALUE” Rule

Valuation isn’t just about numbers—it’s about narrative.

Many startups fall into the trap of DIY Valuation and miss out on key investor opportunities.

At Katrela Ventures we follow The “VALUATION” Rule, which highlights mistakes to avoid:

V: Vague Projections – Overestimating revenue without solid data.

A: Assumptions Overload – Making assumptions without validation.

L: Lack of Market Comparison – Ignoring industry benchmarks.

U: Underestimating Expenses – Missing key costs.

A: Avoiding Compliance – Overlooking regulatory requirements.

T: Team Blind Spot – Undervaluing the strength of your team.

I: Ignoring Investor Expectations – Not aligning with market realities.

O: Over-optimism – Valuing on potential without current traction.

N: Neglecting Professional Support – Skipping expert guidance.

Enter the The “VALUE” Rule –avoid common pitfalls in your valuation journey:

V: Validate Your Assumptions -

Use data, not intuition, to validate your assumptions.

A: Analyze Market Trends -

Stay informed about market trends and competitor valuations.

L: Leverage Professional Expertise -

Consult financial experts for accurate valuation insights.

U: Understand Your Metrics -

Know your key performance indicators (KPIs) thoroughly.

E: Embrace Flexibility -

Be flexible and open to feedback on your valuation and negotiations.

At Katrela Ventures, we specialize in crafting valuation models that tell a compelling and credible story to investors.

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