Template Description

The Startup Valuation Certificate Template is a professionally structured and regulatory-compliant document used to certify the fair market value (FMV) of a startup company’s equity shares. It is designed for early-stage ventures preparing for fundraising, ESOP allotment, regulatory filings, or strategic decision-making. Typically spread across 3 pages, this Microsoft Word-based template is prepared by authorized professionals (such as Registered Valuers, Chartered Accountants, or SEBI Registered Merchant Bankers). It includes all vital business, financial, and methodological inputs that justify the share valuation in a legally recognised format.

Understanding the Startup Valuation Certificate Template

The Startup Valuation Certificate Template ensures startups have a legally acceptable, investor-ready, and audit-supportive valuation certification. The template provides a well-structured declaration backed by valuation logic, allowing startups to maintain transparency, governance, and compliance.

Key Features of the Template

1. Detailed Company Information: Captures company name, CIN/registration number, incorporation date, PAN, registered office address, and a summary of its core business operations, ensuring the valuer and recipient understand the business context.
2. Effective Valuation Date: Identifies the date on which the valuation is considered effective, an important compliance requirement for both internal and regulatory purposes.
3. Purpose of Valuation: Lists multiple use cases such as fundraising, ESOP issuance, internal management decisions, or M&A. The specific intent behind the valuation is highlighted, providing legal clarity and an audit trail.
4. Valuation Methodologies Explained: Includes a section on the method(s) use,d DCF, Comparable Company Analysis, Berkus Method, etc., along with a summary of financial assumptions like growth rates, discount rates (WACC), valuation multiples, EBITDA margin, and forecast duration.
5. Valuation Summary and Results: Provides concise outputs: pre-money and post-money valuation (in both INR/USD), per-share price, and total number of fully diluted shares, key for investors, auditors, and regulatory submissions.
6. Professional Declaration & Limitations: A professionally worded declaration by the valuer affirming independence, data accuracy, and the temporary validity of the valuation (typically 3–6 months). It discloses reliance on management projections and clarifies the limitations of the certification.
7. Valuer’s Credentials and Authority: Includes full credentials of the issuing valuer or firm: name, address, valuation registration number, FRN (if applicable), SEBI/IBBI/CA/CPA status, and contact details.
8. Signature and Execution Block: Provides a formal execution section including the signature, name, designation, membership number, date, and place of issue, along with the seal or stamp of the issuing professional or firm.

Conclusion

The Startup Valuation Certificate Template acts as a cornerstone for any startup raising capital, issuing shares, or undergoing corporate actions. It builds financial credibility, establishes valuation logic, and ensures compliance with Indian and international valuation norms. This document not only protects both startups and investors from regulatory scrutiny but also provides transparency and confidence in the startup’s financial trajectory. It is an indispensable part of a startup’s documentation suite and a standard prerequisite for investment readiness.