CASE SCENARIO

Should we use discounted cash-flow analysis (DCF) to value our startup?

I run a small tech startup that's been in the market for about a year and a half growing at about 15% per month. We currently process around 25-30K each month, and although we sometimes lose money due to system upgrades and other process investments, our margin is supposed to be around 30%.

We have about 1000 subscribing customers and make additional revenue from up-sell and premium products. We have managed towith A LOT of work and using only one sales channel.

We are considering making an app to sell our service, push more online sales, and open similar channels (mass media) to what we've had success with. In order to do this", we must raise money.

This question will lead to other questions, and if DCF is the way to go, then our financier will take us in that direction, but considering current earnings (or losses) are temporary and the growth of our company is just ahead, is DCF the best method to value our company?