A start-up investment attractiveness assessment shows whether an investor should put money into a project and on what terms, based on the market, product, financial model, accounting, tax and risks. Key Solutions prepares the financial side: a model with scenarios, a valuation range, an accounting check and an investor memo.
+38 (068) 777-14-74 Telegram WhatsApp
In short
- When you need it: before a funding round, talks with a fund or business angel, a grant or loan application, or a new participant joining your LLC.
- What you get: an investment attractiveness memo, a multi-year financial model, a valuation range and a list of risks an investor will find in due diligence.
- Timing: in our experience, a few weeks after we receive the data. The schedule goes into the contract.
- Fee: agreed per project, depending on the stage, number of legal entities, state of the books and depth of market analysis.
- Where to start: send your pitch deck or project summary, any financial statements and the amount you plan to raise.
What investment attractiveness means
Investment attractiveness is the set of objective and subjective characteristics an investor uses to decide whether to fund a company: solvency, efficient use of money and assets, profit, product quality and competitiveness.
Ukrainian law defines investments as all kinds of property and intellectual assets invested in business and other activities that generate a profit (income) and/or achieve a social and environmental effect (Art. 1 of Law No. 1560-XII). For a pre-revenue start-up the assessment rests on the market, the team and the model. For a company with sales, the financial statements and cash flow come first.
External and internal factors
External factors are conditions the company cannot control: the investment climate in the country and region, rules for repatriating dividends and investment, how the industry is developing, competition, the talent pool and R&D in the sector.
| Factor group | What we analyse | What the investor sees |
|---|---|---|
| Product and market | Novelty, target audience, market size, competitors | Whether there is demand and room for the product |
| Finance | Unit economics, costs, break-even point, capital needs | A model with scenarios and payback period |
| Accounting and tax | State of the books, tax regime, settlements with founders | Tax risks and a plan to close them |
| Organisation | Founders' shares, capital management, investor exit options | A clear entry and exit structure |
| Risks | Dependence on one client or founder, rights to the product and brand | A prioritised risk map |
How a start-up is valued
We apply several methods and present a range with the assumptions behind each figure: discounted cash flow for projects with predictable revenue, market multiples of comparable deals, the cost approach for pre-revenue products, and the venture capital method, which works back from the expected exit value to a value today.
A valuation for negotiations and a formal appraisal report are different documents. A property appraisal report in Ukraine is issued by an appraisal firm certified by the State Property Fund with a qualified appraiser on staff (Arts. 5 and 12 of Law No. 2658-III). Key Solutions does not hold that certificate: we calculate value for negotiations and prepare the financial data an appraiser needs.
What the service includes
- Founder interviews and market and competitor analysis based on public data.
- A multi-year financial model with base, upside and downside scenarios.
- A quick check of accounting and tax: tax regime, source documents, settlements with founders.
- An investor memo in English or Ukrainian.
How we work
- Brief and data Purpose, round size, data list.
- Market and model Market analysis, model and scenarios.
- Accounting and tax Books, tax regime, founder agreements.
- Valuation and risks Valuation range and risk map.
- Investor memo Memo, model and answers to the investor.
Timing, fee and what we need from you
In our experience, an assessment takes a few weeks after we receive the data. Timing depends on the project stage, number of legal entities, completeness of the books and how quickly the founders respond. The fee is agreed per project and fixed in the contract before work starts.
- Pitch deck or project summary, target raise and use of funds.
- Financial statements and trial balance if the company already trades.
- Ownership structure and agreements between the founders.
Audit requests and Diia City instruments
Funds often ask for audited or reviewed statements before signing. An audit of financial statements or a review under international standards is performed and signed by a partner audit firm entered in the Register of Auditors and Audit Entities; Key Solutions prepares the books and statements and answers the auditor's queries. Medium and large companies must publish annual statements with an audit report (Art. 14(3) of Law No. 996-XIV). That statutory audit is performed and signed by a partner audit firm entered in the section of the Register for firms entitled to conduct statutory audits; Key Solutions organises the work, prepares the books and statements and supports the audit through to publication. See how we run it on our mandatory audit page.
Diia City residents can raise money through a convertible loan and an option to acquire a stake (Arts. 29 and 30 of Law No. 1667-IX). We show how these deals affect the books, taxes and founders' shares; the agreements themselves are drafted by our group's law firm legal.ua.
Rules the work relies on
- Art. 1 of Law No. 1560-XII on Investment Activity — definition of investments.
- Arts. 5 and 12 of Law No. 2658-III — who issues a property appraisal report; Art. 7(1) — appraisal at the request of a party to a deal.
- Arts. 29 and 30 of Law No. 1667-IX — convertible loans and options for Diia City residents.
Why Key Solutions
- Company
- Key Solutions Audit Firm LLC (ТОВ «АУДИТОРСЬКА ФІРМА «КЕЙ СОЛЮШНЗ»), EDRPOU code 39610085. The company's details are public in the Unified State Register (ЄДР).
- Contract
- We work under a contract: scope, timing, liability and confidentiality are agreed before work starts.
- Group
- Key Solutions is part of Innova Consulting Group: legal matters are handled by legal.ua, crypto-asset taxation by crystal.tax.
- Office
- Our office is at 77 Velyka Vasylkivska St., Kyiv. We serve clients across Ukraine remotely. The specialists who run engagements are listed on the Our employees page.
Frequently asked questions
What is the investment attractiveness of a company?
It is the set of characteristics an investor uses to decide whether to invest and on what terms: solvency, profitability, efficient use of money and assets, product quality and competitiveness, plus external conditions such as the country, the industry and the market.
What criteria are used to assess investment attractiveness?
External criteria cover the investment climate, industry development, competition and the labour market. Internal criteria cover the product and demand, financial performance and the model, the state of accounting and tax, ownership and risks. The memo gives a conclusion for each one.
How do you value a pre-revenue start-up?
We use the cost approach, the venture capital method and comparisons with deals in similar companies. The inputs are market size, the sales plan and the cost of building the product and team. The result is a range with assumptions the investor can test.
Is your valuation the same as an appraisal report?
They are different documents. We calculate value for negotiations and management decisions. A formal appraisal report under Law No. 2658-III is issued by an appraisal firm certified by the State Property Fund. If an investor or the law requires one, we prepare the financial data for the appraiser.
Does an investor need audited statements?
Often, yes: funds and strategic investors ask for audited or reviewed statements before a deal. The audit or review is performed and signed by a partner audit firm entered in the Register, while Key Solutions prepares the books and supports the engagement. For medium and large companies the audit is mandatory and is performed by a partner firm from the relevant section of the Register.
How much does the assessment cost?
The fee is agreed per project. It depends on the project stage, number of legal entities, state of the books, depth of market analysis and the language of the memo. We quote the fee and timing after the brief and fix them in the contract.
Related services
Prepare your start-up for an investor meeting
Tell us the project stage, how much you plan to raise and when you meet the investor. We will reply with the scope, timing and fee.
Book a consultation Order the service +38 (068) 777-14-74 Telegram WhatsApp