Valuation is a subjective term, when we talk about valuation we deal with many alternative opinions, theorists consider valuation as an outcome of market forces, but the understanding of market forces need a thought. You can consider the example of Coconut Water for understanding the complexity of valuation. Technically speaking the market price of a product depends on cost and profit margin over it, the cost can be similar for a product if it is being produced/grown in a similar environment. Having similarity of cost, the price of Coconut water will be different at Chennai and New Delhi, the difference is a result of variation in the demand of the product which is not simple mathematical function but a derivation of many qualitative things like location, people’s preferences, choices, etc. Recently we heard a new term Cryptocurrency and that Bitcoin, the first cryptocurrency reached to all-time high of $19,783.06, now before understanding the valuation of Bitcoin, let’
Startups is a very glamorous word, from young mind to the old genes all are inspired by this word and this is pushing them to work on their dreams, pushing them to utilize every resource they have money, people, time and age, the reason is the believe in the idea and its viability, which most of recognize as “One in a million” or “Next Zuckerberg”. Ideas are the product of the interaction between our creative mind and the environment we live in, it's the creativity which help us to find solutions to a problem which we feel that people in general are facing and if we can have a solution, we can sell that solution as a product or services to satisfy the need and a rational person will pay for it, this though is true but most failed to understand that tagging a problem generic is a subjective thing and may not have that proportionate generic thing that can signify its quantity. The acceptability of an idea is based on two major things, firstly the acceptability quantity and