Start-Up Valuation : Bumble Inc. case study
This paper has been based on which methods should be used in order to value a Start-Up. The structure of the paper has been divided into four parts. In the first part, we have mainly defined what a start-up is. It has been clarified which are the main characteristics that distinguish a start-up from...
| Autor: | |
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| Tipo de recurso: | tesis de maestría |
| Fecha de publicación: | 2023 |
| País: | España |
| Institución: | Universitat Politècnica de Catalunya (UPC) |
| Repositorio: | UPCommons. Portal del coneixement obert de la UPC |
| Idioma: | inglés |
| OAI Identifier: | oai:upcommons.upc.edu:2117/396305 |
| Acceso en línea: | https://hdl.handle.net/2117/396305 |
| Access Level: | acceso abierto |
| Palabra clave: | New business enterprises -- Finance -- Case studies Online dating -- Software -- Economic aspects Internet industry -- Valuation New business enterprises -- Valuation -- Methodology Empreses -- Creació -- Finances -- Estudi de casos Cites en línia -- Programari -- Aspectes econòmic Internet -- Indústria i comerç -- Valoració Empreses -- Creació -- Valoració -- Metodologia Àrees temàtiques de la UPC::Economia i organització d'empreses::Comptabilitat i control financer |
| Sumario: | This paper has been based on which methods should be used in order to value a Start-Up. The structure of the paper has been divided into four parts. In the first part, we have mainly defined what a start-up is. It has been clarified which are the main characteristics that distinguish a start-up from a more mature company, such as the lack of history, its profitability, its dependence on private capital, the risk it presents, the number of different investors and rounds needed to raise funding and finally the illiquid nature of an investment in a start-up. We then proceeded to define what a VC is and how it works. The different types of financing rounds in which start-ups participate in order to obtain financing were studied. Finally, some technological trends that will mark the industry in the future were defined. The second part of the work focused on studying the main types of company valuations that exist. A distinction has been made between two different types depending on their suitability when valuing a start-up, since, as has been said, these have different characteristics to more mature companies, so that the methods normally used may not be useful. On the one hand, traditional valuation methods have been studied, including DCF, LB O, Public Comparables and Precedent Transaction. On the other hand, valuation methods for start-ups have been studied, including the Venture Capital Method, the Real Options Method, the First Chicago Method, the Berkus Approach and several others. Next, the impact of different subjective factors on the valuation of start-ups was discussed. Finally, the points of the shareholders agreement that could affect the valuation of a company have been mentioned. In the third part of the paper, a case study of the company Bumble Inc, a company that owns online dating platforms, has been carried out. The company has been studied in depth, as well as the market in which it operates. Then, the different valuation methods mentioned in the second part of the paper were calculated and compared in a joint analysis. Finally, in the fourth part of the paper, a series of conclusions have been drawn about start-up valuations and how they are influenced by interest rate changes |
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