We value early-stage and growth companies in Dubai, Abu Dhabi and the wider UAE for founders, investors and boards, and we are clear about how uncertain such valuations are.
Situations
When UAE clients ask for this valuation
- 1You are preparing for a seed or Series A round and want a defensible pre-money valuation.
- 2Founders are transferring shares between themselves or bringing in a new co-founder.
- 3The company is issuing shares or options and needs a value for the ordinary shares.
- 4An investor needs to value its holding between rounds.
Who asks us
Typical clients
- Founders and boards
- Angel investors and venture funds
- Accelerators and their portfolio companies
What we value
The subject of the valuation
The company as a whole, and the classes of share within it. Where preferred shares carry liquidation preferences, anti-dilution or conversion rights, we consider how value is shared between the classes.
Our method
How we reach the figure
For businesses without established profits, we rely on discounted cash flow analysis using scenario-weighted forecasts, market evidence from comparable funding rounds and listed peers, and, where appropriate, the price of recent rounds adjusted for the rights attached to the shares issued.
We explain the difference between pre-money and post-money value and show how the round's terms affect each class of shareholder.
| Income | Scenario-weighted discounted cash flow | Usual starting point |
|---|---|---|
| Market | Comparable funding rounds and recent price | Usual starting point |
| Asset | Net assets, rarely meaningful | Where relevant |
Value is then allocated between share classes, reflecting liquidation preferences and conversion rights.
In the UAE
Pre-money, post-money and dilution
Pre-money value is the value of the company before new investment; post-money value adds the new cash. If an investor puts AED 5 million into a company valued at AED 20 million pre-money, it owns 20% of a company worth AED 25 million post-money. Founders' percentages fall, but the value of their shares should not, provided the money is used well.
Value drivers
Points that move the value
- Traction
- Revenue, growth rate, customer retention and unit economics.
- Market
- The size of the opportunity in the UAE, the GCC and beyond.
- Team
- Founder experience and the strength of the wider team.
- Terms
- Liquidation preferences, convertible notes and option pools that change what each class receives.
Documents
What we will ask you for
- Pitch deck and business plan
- Financial model and historic results
- Capitalisation table
- Term sheets and shareholders' agreement
- Details of convertible instruments
The full list is tailored to your company once the scope is agreed.
Report, timing & fees
What you receive, and when
A valuation report suitable for investors and boards, with clear explanation of the assumptions and their uncertainty.
Timing
Usually two to three weeks.
Compare report levels on our reports and deliverables page.
Questions
Questions clients ask about this service
- Can you value a pre-revenue startup?
- Yes, though the range of reasonable values is wide. We explain what drives it and how it could change.
- Do you value SAFEs and convertible notes?
- Where within the scope of the engagement, yes, by modelling how and when they are likely to convert.