SEED CAPITAL FINANCING VALUATION OF M-HEALTH SERVICE STARTUP CASE STUDY: CAGEUR.IN

• Main Author: Nadinda Rachmat (NIM 19014043), Eraulia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/21954
• Institution: Institut Teknologi Bandung

An advancement in technology this past decades has made a mobile phone smarter. The basic <br /> <br /> feature of phone call and sms provided in the early days of a mobile phone has evolved to a <br /> <br /> multifunction smartphone. One of the features that a smartphone can carry is the appearance of <br /> <br /> mobile applications for healthcare. The term of Mobile Health or M-Health has becoming more <br /> <br /> popular as more people try to support healthcare services through mobile apps. In Indonesia, the <br /> <br /> government tries to reach a Universal Health Coverage through its National Insurance program <br /> <br /> called JKN (Jaminan Kesehatan Nasional). Currently 68,6% of Indonesian has joined JKN <br /> <br /> program from the targeted 100% of Indonesia citizens are covered by JKN. As the growing <br /> <br /> members of JKN, the number of patients who are going to go to the clinics will also increased. <br /> <br /> Sick patients will make clinics business spend higher cost that eventually will make them suffer <br /> <br /> from heavy losses. Cageur.in company is a startup founded in 2016 that tries to help reducing <br /> <br /> the cost of the clinics by reducing the number of sick patients through its digital platform for <br /> <br /> clinics. However they are still in the seed stage without any revenues and require some capital <br /> <br /> to finance its operational. Therefore they need to find a suitable source of financing to support <br /> <br /> their business. <br /> <br /> The purposes of this research are to find Cageur.in enterprise value in order to be a bargaining <br /> <br /> power in the attempt to look for capital and the suitable source of financing for them. Several <br /> <br /> valuation methods which are recommended for valuating the seed stage startups will be applied. <br /> <br /> The methods are Berkus method, Scorecard method, Risk Factor Summation method, <br /> <br /> Discounted Cash Flow method and Venture Capital method. <br /> <br /> From the assessment of five valuation methods the results show Berkus method generates <br /> <br /> USD1,400,000 valuation, Scorecard method shows USD 900,999, Risk Factor Summation <br /> <br /> method shows USD1,320,956, DCF shows a USD4,897,766 valuation and Venture capital <br /> <br /> method shows a USD4,398,765 valuation. For a seed stage startup like Cageur.in, Berkus, <br /> <br /> Scorecard and Risk Factor Summation method are more preferable than the two following <br /> <br /> methods which are DCF and VC method. This is due to the lack of financial records that makes <br /> <br /> finding the right input factors used the later methods such as growth rates, cost of capital and <br /> <br /> other underlying financial assumptions for forecasting its future financial projections is <br /> <br /> difficult. <br /> <br /> Keyword: Healthcare, Seed Stage, Startup, Financing, Startup Valuation