Remove 2021 Remove Comps Remove Specific Risk
article thumbnail

Down Round Valuation: How to Survive and Protect Your Equity (2025)

Equidam

Indeed, companies valued primarily on revenue multiples during 2020-2021 are now the most vulnerable to down rounds. Case Study : Consider a SaaS company that raised $10M at a $50M valuation in 2021 (25x their $2M ARR).

Equity 59
article thumbnail

Startup Valuation: The Ultimate Guide

Equidam

10] , [23] , [2] Discount Rate: The rate used to discount future cash flows is typically the cost of equity, calculated via the Capital Asset Pricing Model (CAPM): Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium. [23] 32] , [33] Abundant Capital: Massive amounts of capital flowed into VC funds, reaching record levels. [35]