In startups and general businesses, valuation refers to the process of determining the financial worth or value of a company. It is an estimation of what the market considers the company’s value to be based on various factors, such as its assets, financial performance, market potential, intellectual property, and growth prospects. The way startups are valued is different from regular businesses. This is because of their unique characteristics and uncertainties. Firstly, startups are typically in the early stages of development, lacking an extensive operating history and often generating limited or no revenue. Unlike established companies with a track record of…
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