The Logic of the VC Method for Startup Valuation
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.
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