THE APPLICATION OF RISK-BASED NEW VENTURE TECHNIQUE FOR STARTUP VALUATION (CASE STUDY: VEE NATURALS)

• Main Author: Nursa'adah, Maulidyah
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/62086
• Institution: Institut Teknologi Bandung

growth and evolution of the natural and organic cosmetics industry in Indonesia offers great opportunities for the natural-based cosmetics business, especially Vee Naturals. Currently, Vee Naturals Company want to increase the business scale. However, Vee Naturals facing limited funding constraints. Thus, Vee Naturals is expected to attract investors in order to increase the the company size, both in the scale of production and market coverage. To overcome this issue, the valuation is done to calculate the selling value of the company to be offered to investors. In this paper, a new risk-based business assessment technique is conducted to provide objective calculation results. In addition, this technique is considered relevant because it can take into account the possible large risks that will be faced by investors. The method of new risk-based new venture technique can combine the point of view of investors in terms of risk and innovators in terms of company potential. The results of calculations using this technique show that the Vee Naturals company is at milestone 3 (sales channel aquisitions), after completing milestones 1 (market survey and prototype) and 2 (beta testing) with a valuation value of IDR 41.840.626 in pessimistic conditions, IDR 74.826.724 in most likely conditions, IDR 273.686.759 in optimistic conditions. And when normal risk is applied, the valuation of the Vee Naturals company will reach IDR 199.266.252 for pessimistic conditions, IDR 525.164.130 for most likely conditions and IDR 1.609.059.546 for optimistic conditions. It can be concluded that Vee Naturals Company deserves