Six methods
Standard startup valuation methods
Click any method for the canonical formula, required inputs, and the caveats that make the output more or less defensible.
Bill Sahlman (HBS) · 1987
VC Method
Late-seed and Series A onwards. Anchors on exit value and target VC return.
Dave Berkus · 1996 (2016 update)
Berkus Method
Pre-revenue / early-pre-seed startups with no financial projections yet.
Bill Payne · 2011
Scorecard / Bill Payne
Pre-revenue startups compared against a regional pre-money median anchor.
Ohio TechAngels · 2010s
Risk Factor Summation
Sanity-checking valuations against 12 enumerated risk dimensions.
Equidam framework · Standard adaptation
DCF (early-stage adapted)
Startups with at least 18 months of forecastable revenue and a defensible long-term growth story.
Various · Standard
Comparables (market multiples)
Sanity check against comparable transactions in similar sector + stage + geography.