How to Value Your Brand in a Tech-Driven Economy

In the late-stage investment committee of a growth-stage SaaS platform I once advised, we hit a snag. The founders claimed their brand—beloved among developers—was worth tens of millions. The lead investor disagreed, citing flat CAC efficiency. The finance lead stayed silent. No one could quantify what the brand was actually doing. The round nearly stalled over what should have been an asset, not an argument.

This isn’t an isolated case. Across boardrooms in Riyadh, Jakarta, and Nairobi, brand value has become the elephant in the data room—everyone senses its weight, but few can put numbers to it. In an economy where distribution is often more valuable than product, brand should be one of the most defensible forms of equity. But when treated as narrative gloss, not commercial leverage, it becomes a liability in capital negotiation.

This memo is about fixing that. Specifically, it lays out how to value your brand in a tech-driven economy—credibly, defensibly, and in ways investors can model, not just admire.

The Capital Relevance of Brand in Tech-First Businesses

In traditional industries, brand value was built slowly—over decades of advertising, retail dominance, and consumer habit. In tech, it’s built in cycles, often within a few years, and often intertwined with network effects, product-led growth, and virality. But this acceleration doesn’t mean it’s any less real. If anything, the inverse is true: brand becomes a signal of market momentum, customer advocacy, and pricing insulation.

Consider companies like Notion, Figma, or Stripe. None rely on mass media advertising. Their brand equity is derived from product experience, developer mindshare, and ecosystem loyalty. In each case, the brand doesn’t just enhance perception—it compresses CAC, increases retention, and drives pricing premium. But in a financial model or audit trail, this value often disappears.

Brand becomes especially capital-relevant at three points:

1. Equity financing, where intangible assets affect dilution and investor perception.

2. M&A, where acquirers assess goodwill, customer stickiness, and growth durability.

3. Licensing or partnership deals, where perceived brand strength affects leverage in negotiation.

The danger is that founders overstate symbolic value—while CFOs understate its economic utility. The result: no one owns the asset, and it dies on the slide deck.

Frameworks for How to Value Your Brand in a Tech-Driven Economy

If you’re building a financial case around brand, use the relief-from-royalty method or a comparables-driven multiple. These are the two most audit-defensible methods—and, crucially, they speak the language of capital allocators.

Under relief-from-royalty, you ask: “What would we have to pay a third party to license our own brand if we didn’t own it?” You apply a reasonable royalty rate to branded revenues (often 1–8% depending on sector), then discount that future stream to present value. For example, if a consumer tech startup generates $20M in topline and applies a 3% royalty with a 15% discount rate, brand value comes in at roughly $3–4M—real, defendable, and bankable.

This method works well for:

• D2C brands with strong customer loyalty

• Platforms where brand influences partnership flow

• B2B firms where trust signals compress sales cycles

Alternatively, in high-growth SaaS or fintech, where branded revenue is harder to isolate, use market benchmarking: compare with public or M&A comps where brand was broken out. Adobe’s acquisition of Figma valued brand and user loyalty as part of a >20x revenue multiple—versus standard 8–12x SaaS norms. In emerging markets, data may be limited, but interviews with regional M&A advisors or even indirect comps (e.g., the resale price delta of a branded product vs. a white-label equivalent) can inform your multiple assumptions.

A final caution: stack dependencies matter. If your brand’s power is built on exclusive data, unique UX, or a viral community, don’t double-count. Map the intangible stack and allocate value accordingly.

Operationalizing Brand Valuation for Strategic Use

A brand valuation isn’t an academic exercise—it must affect your capital strategy. For it to matter:

• Make it visible in the boardroom: Build it into your valuation narrative—not as a cherry-on-top, but as a driver of customer LTV or retention metrics.

• Tie it to capital defense: During financing, use brand valuation to justify a higher pre-money or preserve founder ownership. In one Series C I supported, a credible brand valuation shaved 7% off founder dilution by anchoring price on more than just revenue.

• Use it in commercial negotiations: A SaaS firm in the GCC I advised used brand equity analysis to extract better rev-share terms from an enterprise reseller—simply by proving that their brand led to shorter sales cycles and higher renewal rates.

  
  

You should also formalize brand as a tracked asset internally. This means:

• Establishing governance: Treat brand like an IP asset, with oversight, strategic investment, and reporting.

• Assigning ownership: Whether it’s the CMO or CFO, someone should be accountable for brand equity creation, tracking, and defense.

• Periodic valuation updates: Like any asset, revalue it post-major campaigns, product pivots, or market expansions.

  
  

In KSA and broader MENA, sovereign-linked funds increasingly scrutinize intangible assets during due diligence—especially for firms aiming for regional scale. If your brand is a differentiator, it must be auditable, not anecdotal.

Why Most Brand Valuations Fail—and How to Avoid It

Too often, brand valuations fail because they’re either fluff or formulaic. The fluff version is a slide titled “Brand Equity” with no metrics. The formulaic version is an automatic royalty-rate template applied without contextual basis.

Credibility is everything. Your brand valuation must be:

1. Tied to commercial reality: Does your brand command premium pricing? Increase LTV? Lower CAC? Prove it.

2. Backed by third-party logic: Use industry benchmarks, market comparables, or real-world licensing examples.

3. Auditable: Include assumptions, sources, and calculation steps. Make it something your auditor won’t flag—and your investor can defend to their own LPs.

In one exit case I advised in Southeast Asia, the buyer was prepared to price the company at 10x EBITDA. But after we disaggregated and valued the firm’s B2B brand—which had driven high-margin inbound leads from regional telcos—they paid 13x. That uplift didn’t come from storytelling. It came from defensible brand valuation, cross-verified by sales funnel data and win-rate analysis.

That’s the bar you must meet. Not brand as identity, but brand as economic moat.

Every founder believes their brand is valuable. Fewer can prove it. In an era where capital is more selective and acquirers more forensic, the days of narrative-led fundraising are fading. What remains is this: the brand you build must be the asset you can price, defend, and deploy in capital strategy.

Valuing your brand in a tech-driven economy isn’t just a financial task—it’s an operational one. Done right, it becomes the lever that protects your ownership, strengthens your pitch, and clarifies your moat. Done poorly, it becomes noise. You decide which one you’re presenting at your next raise.