1. Valuation Statement and Methodology October 23 , 2015

2. Agenda Discussion Methodology Overview Venture Capital Method
Scorecard Method
Market Comparables (Multiples)
Summary 2

3. Methodology Overview
TikaMobile will use 3 valuation methods widely accepted within the Angel and VC community to determine early and late stage startup valuation
VC Method: Uses terminal value and risk based IRR to determine discounted present value.
Scorecard Method: Sum value of 5 key value drivers multiplied by median pre-money valuation
Comparables (most used): Industry comps of multiples to determine present value 3

4. Venture Capital Method
Pre-money Valuation = Post money Valuation – Investment amount Where: Post Money Valuation = TV ÷ ROI TV (Terminal Value) = Annualized MRR x Exit Multiple ROI = IRR (Typically 30% - 70%)
VC Discount Rate by Investment Round*
*Guide to Entrepreneurship & Venture Capital, Fuerst & Geiger

5. VC Method Analysis Base TikaMobile Valuation: $8.8MM (MRR only)
We add Services Revenue at 1x multiple for total Valuation = $8.8MM + $2.1MM = $10.9MM

6. Scorecard Method
Uses key value driver comparisons to determine sum of factors score. The score is then multiplied with median pre-money valuation to determine company valuation
Typically used for early stage and late seed startups.
6 key value drivers for startups and weighting:
Strength of Management Team %
Size of Opportunity %
Product/Technology %
Competitive Environment %
Marketing/Sales/Partnerships %
Other Factors (customer feedback) 10%

7. Scorecard Method Analysis
Step 1: Determine Scorecard factor
Step 2: Median Pre-Money Valuation
Step 3: Calculate Valuation
Sum of Factors =
2015 Median Pre-money = $8MM
Pre-money = x $8MM
TikaMobile Valuation = $8.9MM
Source: WSGR Entrepreneurs Report 1H 2015

8. Comparables Method 2015 Median SaaS Multiple = 5x
10 year Median SaaS Multiples
Industry specific actual multiples are used to determine valuation
Most commonly used method by VC community
Valuation = Market Multiple x Annual MRR
2015 Median SaaS Multiple = 5x
Source: Techcrunch

9. Comparables Analysis - Comps
SaaS Industry Actuals
Closest Comps by Industry:
Callidus (3x)
Veeva (8.4x)

10. Comparable Analysis - Final
We will use a standard VC practice of using a discounted investment multiple (to the median) of 3x-4x applied to forward looking revenue for a startup

11. Summary
The average of the three valuation methods is significantly higher than our proposed valuation:
1. VC Method Valuation (Base): $10.9MM
2. Scorecard Method Valuation: $8.9MM
3. Comparables Method (Base): $13.8MM
Averaged Pre-Money Valuation = $11.2MM
Proposed TikaMobile Pre-Money Valuation = $8MM