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Startup Valuation Approaches

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25 views15 pages

Startup Valuation Approaches

Uploaded by

guptaparag305
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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14

Startup Valuation
Approaches

Sandeep Sharma
01 Berkus
Approach
The Berkus Method is
an early-stage startup
valuation approach that
assigns a range of
financial values to key
startup elements, such
as the team,
technology, and market
potential.
02 First
Chicago
Method
The First Chicago
Method is an investment
analysis approach
emphasizing cash flow
forecasting.

It prioritizes discounted
cash flow (DCF)
valuation and risk
assessment for making
investment decisions.
03 Scorecard
Method
A performance
measurement tool that
evaluates and tracks key
performance indicators
(KPIs) to assess and
improve organizational
or individual
performance. It provides
a comprehensive
overview.
04 Risk Factor
Summation
Method
The Risk Factor
Summation Method is a
quantitative approach to
assessing overall risk by
assigning scores to
individual risk factors and
summing them to provide
a comprehensive risk
profile.
05 Venture
Capital
Method
Venture Capital Method is
a valuation approach used
by investors to assess the
potential return on
investment in a startup,
considering future exit
scenarios and expected
financial outcomes.
06 Valuation
by stage
Valuation by stage
refers to assessing the
financial worth of a
startup or company at
different development
phases, such as seed,
series A, B, etc., to
determine its overall
value.
07 Schwartz/
Moon
Schwartz/Moon is a creative
collaboration between Tony-
winning composer Stephen
Schwartz and director-
choreographer Robert Moon.
Together, they bring
theatrical productions to life
with their combined
expertise in music and
direction.
08 Future
Valuation
Multiple Method
Future Valuation Multiple
Method is a financial analysis
approach that estimates a
company's value by applying
projected multiples (like P/E
ratios) to future financial
metrics, aiding in valuation
predictions.
09 Market
Multiple
Approach
The market multiple
approach is a valuation
method that assesses a
business's value by
comparing its financial
metrics, such as earnings
or revenue, to those of
comparable companies in
the market
10 Comparable
Transactions
Method
Comparable Transactions
Method is a valuation
approach that determines
the value of a subject
company by analyzing
recent transactions involving
similar companies in the
same industry or market.
11 Discounted
Cash Flow
Method
Discounted Cash Flow
(DCF) method is a
valuation approach used to
estimate the present value
of future cash flows. It
involves discounting
projected cash flows to
their present value.
12 Cost-To-
Duplicate
Approach
Cost-to-duplicate
approach assesses the
expense of replicating an
asset or project,
considering current market
costs. It provides insights
into replacement value for
insurance or valuation
purposes.
13 Liquidation
Value
Liquidation value is
the estimated worth
of a company's
assets when sold
quickly, often at a
discount. It
represents the
minimum value in the
event of bankruptcy
or closure.
14 Book Value
Book value is the net
value of a company's
assets minus its
liabilities,
representing the
shareholders' equity.
It is calculated by
subtracting total
liabilities from total
assets on the balance
sheet.

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