Equidam

APRIL 26, 2025

Comparable Transactions (as a Primary Method): This method, often referred to as “comps,” involves applying valuation multiples (e.g., Instead of comparing to an average, it typically starts with a maximum potential pre-money valuation deemed achievable for a startup of that type in its region.

Discounted Cash Flow 59

Discounted Cash Flow Terminal Value Book Value Beta 59

Equidam

APRIL 22, 2025

2] Startups typically lack significant historical financial data, often operate with negative profits initially, rely heavily on private equity or venture capital rather than traditional bank loans, and face a much higher risk of failure. [1] This premium rises when perceived market risk increases. [27] 2] [15] [17].

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52

Equidam

APRIL 22, 2025

23] , [24] , [25] This average serves as a starting point, which is then adjusted upwards or downwards based on the specific startup’s relative strengths and weaknesses across several key criteria. [21] 23] Equidam uses country-specific risk-free rates (10-year government bonds) and market risk premiums (sourced from Damodaran). [23]

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64