A technology specialist in front of the computer

Startup Technical Valuation

A technology specialist in front of the computer

Performed by technical experts who possess specialized knowledge and skills to assess the merits of a startup’s product or technology​

They evaluate the technical aspects such as intellectual property, technology, and product development, in order to better understand the potential market value.

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Challenges of startup technical valuation Technical Valuation is a Complex Process That Requires Specialized Knowledge and Expertise

There are several challenges we consistently confront when performing startup technical valuation for clients at Quandary Peak Research.

Lack of Information
Early-stage startups have limited information available about their technology, product development, and market potential.

Complex Tech
Assessing technical merits of a startup can be a complex process, especially if the technology is new or innovative.

Startups are inherently uncertain, and the future success of a startup’s product development is difficult to predict.

Few Comparables
Finding comparable companies that are similar in all relevant aspects is challenging when searching emerging or niche markets.

Limited Market Data
Assessing the potential market size and demand for a startup’s technology can be difficult when the market is new or evolving.

Lack of Standards
There are no widely established standards for startup technical valuation which makes it challenging to ensure the accuracy and consistency of results.

Startup technical valuation is a complex process that requires specialized knowledge and expertise. It’s important to consider all relevant factors, use a combination of methods, and work with experienced professionals to ensure that the valuation is accurate and fair.

Methods of startup technical valuation The Primary Methods We Use at Quandary Peak When Performing Technical Valuations for Startups

Patent Analysis
Evaluate the strength and potential value of a startup’s patent portfolio. This can include an assessment of the novelty and obscurity of the inventions, as well as the likelihood of the patents being granted and enforced.

Technology Assessment
Evaluate the technical merits and potential of a startup’s technology, including its functionality, scalability, and competitive advantages. This assessment can also include an evaluation of the ability to develop and bring the technology to market.

Market Analysis
Research the potential market size, demand, and competition for a startup’s technology. This can include analyzing market trends, identifying potential customers, and assessing the potential to gain market share.

Team Assessment
Evaluate the technical expertise, experience, and qualifications of a startup’s management and employees. This includes assessing the team’s ability to develop and commercialize the technology, as well as their ability to manage and scale the business.

It’s important to note that these methods are not mutually exclusive, and a combination of them is often used to provide a more comprehensive assessment of a startup’s technical value. Additionally, it’s essential to consider the specific characteristics of the startup and the information available when selecting the appropriate method.

Technical Valuations at Quandary Peak Research

Startup technical valuation is a process performed by technical experts such as engineers or scientists, who possess specialized knowledge and skills to assess the merits of a startup’s product or technology.

Additional aspects of the overall valuation process include financial analysis and market research, these should be used in conjunction with technical examinations to make a comprehensive assessment.

The result is a technical valuation report used by investors, venture capitalists, and other stakeholders to make informed decisions and determine the appropriate level of investment.

Key Steps

Performing a state-of-the-art technical valuation for startups can be complex. Our experts at Quandary Peak are devoted to a rigorous due diligence process by following these steps:

  • Research and Analysis

    This involves conducting thorough research and analysis of the startup's technology, product development, and market potential. This includes conducting a patent search, analyzing the technology, assessing the market size and demand, and evaluating the team.

  • Financial Analysis

    This involves evaluating the startup's financial aspects, such as its revenue and expenses, in order to help determine its potential value. This can include analyzing the startup's financial statements, creating a financial forecast, and calculating valuation multiples.

  • Benchmarking

    This involves evaluating the startup's financial aspects, such as its revenue and expenses, in order to help determine its potential value. This can include analyzing the startup's financial statements, creating a financial forecast, and calculating valuation multiples.

  • Valuation Method

    This involves selecting an appropriate valuation method, such as discounted cash flow (DCF), comparable company analysis (CCA), or precedent transaction analysis (PTA) that best suits the specific characteristics and the information available.

  • Risk Assessment

    This involves the startup's risk profile and determining the appropriate discount rate or cost of capital. This can include analyzing the industry, competition, and management team.

  • Tech Due Diligence Report

    This involves creating a comprehensive report that includes an assessment of the startup's technology and product development, as well as its potential value. This report shall be presented in an easy-to-understand format and tailored to the intended audience.

Startup Technical Valuation

At Quandary Peak Research, we employ a reliable, iterative process that requires multiple rounds of analysis and revisions. We work with experienced professionals such as venture capitalists and private equity firms to ensure that the valuation is accurate and fair.​

A technology specialist in front of the computer

Meet Our Team of Startup Valuation Experts

Mahdi Eslamimehr - Senior Software Consultant

Mahdi Eslamimehr, PhD, MBA

VP of Emerging Tech Due Diligence Los Angeles

Dr. Mahdi Eslamimehr is an award-winning scientist and a senior tech executive in the software product and service industry. He has years of experience in leading tech companies around the world, including Ericsson R&D Center, Samsung Electronics R&D Labs, SAP Research Lab, and Y Combinator.

LitigationLitigationTestifying and Consulting Expert
Due DiligenceArea of ExpertiseProgram Analysis
Ajit Dhavle

Ajit Dhavle, Pharm.D, MBA

VP of Health IT, Audits & Life Sciences Washington D.C.

Dr. Ajit Dhavle is a healthcare technologist, clinician, entrepreneur, and a problem solver with 20 years of experience in digital health, quality, e-medications, Health IT standards, and patient safety. He oversees a team of health informatics experts to provide strategy, management, SDLC, compliance, and audit services to government and commercial entities.

Health ITFocus AreaHealth IT & Life Sciences
Tuyana Molokhoeva - Legal Specialist & IT Expert

Tuyana Molokhoeva, LL.M.

General Counsel Los Angeles

Tuyana is an experienced foreign attorney and expert in arbitration and litigation. She advises clients on IP litigation and arbitration involving trade secret misappropriation, breach of contract, and copyright infringement.

LitigationLitigationExpert Witness Support
Due DiligenceArea of ExpertiseInternational M&A Transactions
William Luk - Senior Software Consultant

William Luk

Regional Director, Northern California Silicon Valley

William Luk is an entrepreneur, software executive, and developer with over 20 years of experience in network and computer security. William has developed and led product teams to deliver enterprise class firewall, intrusion detection / prevention systems, database security, and data security / privacy solutions at Symantec and several security startups.

LitigationLitigationTestifying & Consulting Expert
Health ITFocus AreaSoftware Engineering & Security
Due DiligenceArea of ExpertiseEmbedded Systems & Security
Gordon Mackay - Senior Software Consultant

Gordon MacKay

Senior Software Consultant Austin

Gordon MacKay is a software and systems expert and technical executive with experience in telecom, network security, and SaaS/Cloud platforms. Gordon has led teams in architecting, developing, and deploying a multi‑tenant SaaS-based vulnerability management platform and scanning solution which is being used worldwide by fortune 500 organizations as part of their ongoing cyber defense programs.

LitigationLitigationConsulting Expert
Health ITFocus AreaCloud & App Security
Due DiligenceArea of ExpertiseCybersecurity Analysis
Brad Ulrich - Software Expert Witness

Brad Ulrich

VP of Health IT & Audits Nashville

Brad Ulrich has a diverse career as a computer scientist, software engineer, technology manager, and entrepreneur. His experience spans software design, programming, patent management, healthcare, mobile devices, startups, technology licensing, regulatory compliance, and risk management.

LitigationLitigationSenior Testifying Expert
Health ITFocus AreaSoftware & Standards
Due DiligenceArea of ExpertiseHealth IT & Standards

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