## Professional Valuation of Digifolio Ltd.
Valuing an early-stage PropTech startup, Digifolio Ltd.,
1. Market-Based Valuation
**Comparable Startups in PropTech:**
– **ProptechOS:** Raised $10 million at a valuation of $50 million (Seed Stage).
– **Plentific:** Valued at $250 million post-Series B.
– **CREtech:** $20 million valuation at Series A.
**Key Differentiators for Digifolio:**
– Hybrid model (marketplace + community) with no direct competitor.
– Commission-free structure and freemium growth strategy.
– Early traction: beta users, dropshipping sales, and partnerships with accelerators.
**Valuation Range (Pre-Seed Stage):**
– **Pre-Money Valuation:** £1.8 million – £3.2 million
– Based on comparable PropTech startups at similar stages (pre-revenue with MVP).
– Adjusted for Digifolio’s unique community-driven model and global scalability.
2. Berkus Method**
Valuing Qualitative Milestones:
| **Milestone** | **Value** |
|—————————————————|——————|
| Sound Idea (Problem/Solution Fit) | £400k |
| Prototype (MVP) | £300k |
| Quality Team | £350k |
| Strategic Partnerships | £250k |
| Product Rollout Plan | £200k |
| **Total** | **£1.5M** |
**Final Valuation Range**
Combining methodologies and adjusting for Digifolio’s unique positioning:
– **Pre-Money Valuation:** **£1.8M – £2.5M**
– Justifies a **£500k seed round** for 20–28% equity dilution.
**Key Value Drivers**
1. **Market Leadership Potential**: No direct competitor combines community, marketplace, and freemium growth.
2. **Scalability**: Global PropTech market (500K+ vendors, 4M+ professionals).
3. **AI Roadmap**: Future monetization of AI-driven insights (e.g., predictive analytics).
4. **Partnerships**: Existing ties with accelerators reduce customer acquisition costs.
**Investor Recommendation**
– **Pre-Seed Round:** Raise **£500k at a pre-money valuation of £2.5M** (resulting in a 20% dilution). |
– **Fund Allocation:**
– 50% Platform Development (including vendor store and AI integration). |
– 30% Marketing (including freemium campaigns and events). |
– 20% Team (including CTO and Community Manager). |
– **Exit Potential:**
– **Acquisition:** A potential acquisition by prominent PropTech companies (e.g., Zillow, Procore) at a valuation of **8–12x revenue** (estimated to reach **£10–15M** by 2026).
**Conclusion**
Digifolio’s **£1.8M – £2.5M valuation** reflects its first-mover advantage in the PropTech community space, scalability, and early traction. While risks exist (e.g., adoption speed), the platform’s hybrid model and AI roadmap position it for outsized returns in a $32B market. Investors betting on PropTech disruption and network effects will find compelling upside here
