By Bill Anderson, Senior Valuation Advisor & RICS Associate, Assetica — 2026-04-30
How London businesses are valued for fundraising, sale and investment, what investors look for, and why an independent valuation strengthens your position at the table.
Valuation combines DCF analysis with market multiples from comparable London and UK transactions and listed peers. London's active deal market provides strong comparable evidence, which makes a well-evidenced valuation both achievable and persuasive.
Beyond the number, London investors assess the equity story: the size of the opportunity, the quality and predictability of revenue, the strength of the team, and the governance behind the business. A defensible valuation supported by these factors commands respect.
Founders who set their own number are discounted; those who bring an independent, methodologically sound valuation negotiate from strength. Independence signals seriousness and gives investors confidence in the figure.
How are London startups and businesses valued?
Using DCF, market multiples from comparable London and UK transactions, and listed peers. Recent funding rounds and transaction evidence are key inputs, especially for high-growth businesses.
What do London investors want to see?
A clear equity story, predictable revenue, a strong team, good governance, and a defensible valuation grounded in methodology rather than a number picked to suit the raise.
Do I need an independent valuation to raise?
It is not always mandatory, but an independent valuation strengthens your negotiating position and credibility, and is often expected for larger or institutional rounds.