Valuation tool

Valuing shares in private companies can be difficult because transactions are irregular and prices between them may vary widely. Flashpoint aims to make this process easier for anyone who holds shares in growth-stage tech companies, including employees, founders, and investors. Flashpoint’s methodology used in the valuation tool is based on principles of fundamental analysis, corporate finance best practices, and years of experience of its investment team. The valuation tool produces an indicative value of one’s stake in growth-stage private tech companies based on just a few simple inputs about the business and the shares the user owns. The model matches the inputs with a selected valuation metric for comparable companies based on specific attributes of the business, like the nature of its revenue, what products it sells, and the types of clients it serves, and then runs the valuation taking into account growth and profitability. The backbone of the tool is a long dataset of publicly traded tech companies categorised by the Flashpoint team. A series of statistical analyses were performed to arrive at a set of select valuation metrics. The underlying market parameters of the tool are being updated quarterly so that the valuation estimates take into account the constantly developing market environment. The tool processes the inputs automatically without any human intervention. The output is an indicative valuation for private use and information purposes only; it should not be used for public dissemination or reporting and does not constitute a transaction offer of any kind.