iAccelerate: Building and Defending a Valuation Model Under Scrutiny

Aadi was tasked with building a financial model for a mid-level client at iAccelerate that was preparing for its first fundraise. The client had a valuation figure in mind, but it needed to be grounded in a model that investors would find credible.

He built the model from scratch using the business's own numbers, running a DCF and a comparable company analysis against the most relevant market comparables he could identify. Every assumption, from growth rate projections to discount rates, was backed by his own market research rather than taken from the client's preferred figures.

Once the model was complete, Aadi presented it in a session that included the founders of the client company, the founders of iAccelerate, and an industry veteran brought in to oversee the process. The session ran for approximately one hour and thirty minutes. Throughout, the panel questioned his assumptions in detail, asking him to justify his growth projections, his discount rate, and his choice of comparables.

He defended his research-backed assumptions where he could, and acknowledged where the client's perspective had merit and adjustments were warranted. The final output was accepted by all parties, and the model became the basis for the fundraising process.