Remove Comps Remove Risk Premium Remove Specific Risk
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9 Startup Valuation Methods: 5 to Use, 4 to Avoid

Equidam

Comparable Transactions (as a Primary Method): This method, often referred to as “comps,” involves applying valuation multiples (e.g., This incorporates the risk-free rate, a market risk premium specific to the company’s country, and Beta ($beta$).

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

Equidam

Checklist Method Validation – Document achievement of specific risk-reduction milestones – Show progress on de-risking the business since your last funding 4. Here’s how Equidam approaches this: 1.

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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] 23] Risk-Free Rate: Tied to government bond yields (e.g.,