Hey guys,
Im trying to value a start up tech project and need a few tips. We need to show to the investor that our project is profitable
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The techniques i’ve used are DCF, NPV, IRR, Payback, Profitability Index, what else should i do to evaluate the project?
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How do i get industry data of a particular city in the States? I need to know how many restaurants/shopping malls/bars etc are there because our product will be marketed to them so to gain an estimate for revenue i need to perform an extensive industry analysis. How do i go on about this?
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What discount rate should i be using to discount the cash flows? Currently im using around 40-50% rate which is something i decided upon subjectively since it is a startup company, however this startup company is a subsidiary of a large company, so im not sure what discount rate i should be using
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Is an IRR of around 100-300% normal for a startup company?
Also mention any other tips that you have for valuation of a startup company. The main issue im facing is making reasonable assumptions since i cannot find proper data for industry analysis and im not quite sure how to go about that.