Valuation For Startups — 9 Methods Explained - Deepstash
Value your startup with the Berkus Method

The Berkus Method is a simple and convenient rule of thumb to estimate the value of your box. It was designed by Dave Berkus, a renowned author and business angel investor. It is meant for pre-rev...

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Valuation For Startups — 9 Methods Explained

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Value your startup with the Risk Factor Summation Method

The Risk Factor Summation Method or RFS Method is a slightly more evolved version of the Berkus Method. First, you determine an initial value for your box. Then you adjust said value for 12 risk fa...

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Value your startup with the Scorecard Valuation Method

The Scorecard Valuation Method is a more elaborate approach to the box valuation problem. It starts the same way as the RFS method i.e. you determine a base valuation for your box, then you adjust ...

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Value your startup with the Comparable Transactions Method

The Comparable Transactions Method is really just a rule of three.

Depending on the type of box you are building, you want to find an indicator that will be a good proxy for the value of your...

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Value your startups with the Book Value Method

The book value refers to the net worth of the company i.e. the tangible assets of the box i.e. the “hard parts” of the box.

The Book Value Method is particularly irrelevant for startups as it...

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Value your startup with the Liquidation Value Method

Rarely good from a seller perspective, the liquidation value is, as implied by its name, the valuation you apply to a company when it is going out of business.

Practically, the liquidation va...

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Value your startup with the Discounted Cash Flow method

If your box works well, it brings in a certain amount of cash every year. Consequently, you could say that the current value of the box is the sum of all the future cash flows over the next years. ...

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Value your startup with the First Chicago Method

The First Chicago Method answers to a specific situation: what if your box has a small chance of becoming huge? How to assess this potential?

The First Chicago Method (named after the late Fi...

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Value your startup with the Venture Capital Method

As its name indicate, the Venture Capital Method stands from the viewpoint of the investor.

An investor is always looking for a specific return on investment, let’s say 20x. Besides, accordin...

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The best valuation method is the one described by Pierre Entremont. He says you should start by defining your needs and then negotiate dilution. 

The optimal amount raised is the maximal...

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