Valuation: Due to its growth potential and often untested business tactics, it is very challenging to estimate the value of a VC-backed company. Investment banking utilizes a collection of financial models as well as market data with which to estimate fair value; the process helps startups bargain for favorable terms.
Conclusion
Investment banks add value through expert advice services, the complexity involved in negotiations, and ensuring that VC-backed startups make maximum outcomes on transactions in M&A, balancing the interests of all stakeholders involved.