Startup Advisory Services

Duff & Phelps works with innovative and disruptive early-stage companies around the world, providing startup advisory services related to valuation, business plan/financial model review, and preparation of pitch documents and deal support, including vendor due diligence.

Our team has worked with several early-stage companies, some of which have grown to become unicorns and market leaders. Our team members have a diverse and significant track record working with entrepreneurs.

We Understand the Nuances Pertaining to Early-stage Companies

Presence of complex capital structures, ratchets, liquidation preferences, tag along and drag along rights and other terms that are common in early-stage company investments
Implication of these terms for the relative value of various layers of preference and equity shares within the capital structure
Knowledge of how to apply Black Scholes, binomial lattice and Monte Carlo simulation methodologies as well as the appropriate circumstances in which to apply these methodologies

Our fee structure is suitable for most emerging growth companies and angel-funded startups.

The Duff & Phelps Advantage

Largest and growing network of PE and VC clients globally
Rich experience and understanding of early-stage companies and their nuances
Global firm with operations across 25 countries
Willing to invest in a long-term strategic relationship through proactive service and competitive pricing

Key Services

Valuation Advisory Services

Preparation of pitch book/information memorandum
Financial modelling/financial model review
Valuation of intellectual property (IP)
Employee share-based payments valuation
Other regulatory, tax, reporting and dispute advisory services

Business Intelligence and Investigations

Market entry support
Competitor intelligence
Cyber security and resilience

ESOP Advisory

Assistance with structuring of ESOP plans
Financial impact analysis
Tax implication of ESOP plans

Transaction Advisory Services

Buy-side diligence – Quality of earnings/cash flows/working capital analysis, etc.
Sell-side diligence – Run rate analyses, independent evaluation of recurring EBITDA, etc.

Startup Advisory Case Studies

Case Study 1: Equity Valuation for Investment in a Battery Technology Startup

A major electrical appliances manufacturer was evaluating a strategic investment in a startup operating in a technology battery manufacturing space. The startup had developed a prototype of the product and testing was underway. We supported the investor in making informed business decisions with regards to its proposed investment in the startup. Our valuation not only considered traditional approaches to value but also how VCs typically value startups using a combination of quantitative and qualitative aspects.

Case Study 2: Assistance in IM Preparation and Presentation to the Board of an Insurance Startup

The startup was looking to raise funds for future growth. We helped the client prepare the information memorandum (IM), which included detailed industry and company analyses. In addition, we streamlined the IM to be more accessible and visually appealing to prospective investors. We also presented our findings to the board; this included our estimate of the value of the company under various growth and risk scenarios.

Case Study 3: Business Valuation for Fundraising by a Startup in the Coworking space

The startup designs and manages workspaces to create productive and flexible working environments. The company was contemplating raising funds to support its expansion. We helped the client by critiquing its business plan and carrying out detailed benchmarking against industry parameters. We also provided an estimate of the equity valuation under different probable growth scenarios to arrive at an indicative range of values for negotiation with potential investors.