The early stage equity asset class clearly needs stronger standards and greater transparency - especially around valuation.
A standardised and systematic approach to valuation would be game changing for measuring fund performance, pitching to LPs, and identifying investment targets.
Equidam is the only current solution that offers a range of industry standard methods, packaged with market data, working with both founders and investors.
Could it become the industry standard by the end of 2023?!
I will do my best to resolve in the best way possible this question.
People are also trading
@ian I'm not involved in any way with Equidam. The only relation I have to this is with this botched question by Equidam's Head of Marketing https://manifold.markets/credistick/will-equidam-be-the-standard-for-st#c9ydGNjZkL7c8jEriHhC which was resolved prematurely with bad-faith. (And in which I was the biggest "NO" holder)
@ian I'll do my best to resolve this with as much good faith as possible (and I did try to set this as non-predictive at the start).
To provide a bit more context: Startup valuation is a contentious topic due to the lack of standardisation across the industry - though there are certainly an increasing number of voices promoting the idea of a standard.
A few organisations have published guidelines for valuation, the most high-profile of which is probably the IPEV (International Private Equity and Venture Capital) guidelines, available here:
https://www.privateequityvaluation.com/Valuation-Guidelines
There are very few attempts at an actual standard for startup valuation, though Equidam's methodology is one of the most prominent. It is IPEV compliant, meets the methodological requirements for tax purposes in all significant countries, and has been applied to over 140,000 startups to date.
More information on that is available here:
https://www.equidam.com/resources/Equidam-Valuation-Methodology.pdf
As a disclaimer: I'm Equidam's Head of Marketing, and I set up the original question as an excuse to experiment with the Manifold platform but wasn't quite thorough enough. That said, this topic has the potential to highlight alterntatives and begin an interesting conversation about what the definition of a 'standard' for startup valuation might be, and what should be required.
This is the continuation of this question: https://manifold.markets/credistick/will-equidam-be-the-standard-for-st#c9ydGNjZkL7c8jEriHhC
@FlorinSays Appreciate you setting this up, I messed up the setup of that question to close after one month and then it wasn't clear I could resolve that when it required resolution.
