ONLINE VALUATION: A SOLUTION TO FIND THE VALUE OF STARTUPS

• Main Author: Al Aji Suseno, Dwi
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/49790
• Institution: Institut Teknologi Bandung

Indonesia has recorded 612 startups in 2018 by MIKTI (Indonesia Digital Creative Industry Society). It shows growing up rapidly by 94.4% according to research by MIKTI. It means that willingness to create new business is high. It is a good chance and signal for making benefit from their growth. But this does not indicate the smooth running of a startup to become a unicorn. The failure rate in the startup industry is high in the early stage. Nine out of ten startups will fail. It is only 10% of the total early startup can survive. Therefore, a business incubator is made to prepare startups to run more optimally. But with a large number of business incubators in Indonesia, not all of them are of good quality to optimize startup growth. On the other hand, business valuation is important for a startup. Because it has meaning behind that value. Business valuation has advantages that are no less important than product market fit, namely: startup owner will better understand the assets owned, lay the groundwork for retirement, will reveal weaknesses, well prepare for the worst conditions, and Knowing where the startup's run is, and in which places startup is excelling. Business valuation process is one of the determining factors in the funding process. This research shows that most CEOs or startup owners have difficulty determining the value of their startup valuations. Online incubator with valuation services is expected to be the solution to this problem because this research will focus on one of the functions of online incubator namely startup business valuation. Discounted Cash Flow (DCF) and Venture Capital (VC) are common methods to valuate business based on data in this research. It represents as intrinsic valuation and relative valuation. Research shows that startup owners feel facilitated by valuation services. As an analysis of the valuation process, a startup named Thinker Studio is willing to help us calculate the valuation value using the DCF and VC methods with as condition. From the results of this valuation, the DCF method is worth IDR 1,300,955 (in thousand) and in VC is IDR 193,202 (in thousand). Then the startup judge that with a weighting of 80% (DCF) and 20% (VC), the DCF is worth IDR 1,040,764 (in thousand) and VC is worth IDR 38,640 (in thousand). Then in the results of the sensitivity analysis, the startup get 3 variables with a swing value above 10%, namely sales on Artificial Intelligence products on the edge, discount rate, and Research and Development rate. The research resulted in a process of how online incubator: online valuation services can help startups evaluate their startup business. From the results of process analysis, this study found input variables that can be used as material for system implementation and simple business processes to help startup owners find valuation.