How Stakefluence values a brand

Why the value matters

A Creator Stake moves with the value of the brand. If the brand becomes worth 3× as much, each stake is worth 3× as much too. So the brand's value decides what creators eventually receive.

That is why the value has to be fair, simple and the same for everyone. No negotiations per brand, no surprises afterwards.

The formula

A brand's value is the higher of two numbers: 1.5× revenue over the last 12 months, or 8× profit (EBITDA) over the last 12 months. There is a minimum of € 50,000. On How valuation works you see the formula at a glance.

These are common rules of thumb for young online shops and direct-to-consumer brands. They are not perfect for every company, but they are equally fair for everyone and easy to check.

Why revenue and profit?

Young brands often make little profit because they put everything into growth. Then revenue counts. A brand that is already profitable is rewarded through its profit.

The higher number counts. That way creators never lose out when a brand deliberately invests in growth. And because profit is easier to shrink than revenue, revenue always sets a solid floor.

A worked example

At the start a brand has € 400,000 in revenue and € 20,000 in profit. The value is the higher of 1.5 × € 400,000 = € 600,000 and 8 × € 20,000 = € 160,000. That is € 600,000.

Two years later revenue is € 1,200,000 and profit € 150,000. The value is now the higher of € 1,800,000 and € 1,200,000: € 1,800,000. The brand has become worth 3× as much.

A stake that was worth € 1 at the start is now worth € 3. The creator only receives the value added since the partnership started: € 2 per stake. With 500 stakes that is € 1,000, when the brand is sold or when the stakes are bought back.

How we check the figures

Every six months the brand submits its revenue, profit and a profit and loss statement. If the value goes up, it goes live straight away. If it goes down, we review it first. With a drop of more than 20%, a statement from an accountant is required. Also read how we check the figures.

Is a brand late with its figures? Then the value for the stakes automatically rises by 10%, and the brand is temporarily removed from the marketplace. We may also have the figures audited. If they are off by more than 10%, the brand pays for the audit and we correct the value.

And when the brand is sold?

When a brand is sold we use the same formula, over the year of the sale. The actual sale price does not count. That way everyone knows exactly where they stand in advance. Read more about a sale or buyout on the valuation page, and in the legal basis.