Remove Comps Remove Specific Risk Remove Start-ups
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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., 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.

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Startup Valuation: The Ultimate Guide

Equidam

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] , [2] Process: Equidam uses a detailed questionnaire to gather qualitative data. [4]

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How to Use Comparables Effectively in Startup Valuation

Equidam

In the context of startup valuation, “comparables” (often shortened to “comps”) refer to companies that are used as benchmarks to help estimate the value of the startup in question. Industry classification systems like GICS or NAICS can serve as a starting point for identification.

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