Discounted Cash Flow Terminal Value Venture Capital Fund 
Equidam
JULY 30, 2025
The basic formula for the VC Method is elegant: Present Value (Post‑Money) = Terminal Value / (1 + Required ROI) n Where n is the number of projected years used to find the terminal value. 3-5x the total capital invested). The higher the ROI, the lower the present value.
Equidam
JULY 23, 2025
Launching a venture capital fund involves navigating complex legal documents, chief among them the Limited Partnership Agreement (LPA). For first-time fund managers, one often-overlooked section of the LPA is the valuation clause – the provisions that dictate how the fund’s investments are valued over time.
Equidam
APRIL 22, 2025
” [1] [2] [4] [15] [19] It estimates a future exit value (often based on projected earnings and industry multiples) and works backward, using the high ROI targets VCs require (due to portfolio risk), to determine what the company could be worth today to justify that future return. [15] Valuing Startup Ventures: Methods and Challenges.
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