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9 Startup Valuation Methods: 5 to Use, 4 to Avoid

Equidam

Critiquing Unsuitable Methods for High-Growth Startups Several traditional or overly simplistic methods fail to adequately capture the unique characteristics of technology startups. butcher, barber) where assets are tangible and customer acquisition straightforward, it breaks down for technology startups.

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The Role of Industry Assignment in Business Valuation: A Comprehensive Guide

Equilest

By associating a business with the right industry, evaluators can apply industry-specific benchmarks, market trends, and valuation multiples, ensuring a more accurate assessment of the company’s worth. Industry-Specific Risks and Opportunities Every industry comes with specific risks and opportunities.

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How to Categorise a Startup (for Valuation)

Equidam

Categorisation poses a significant challenge in startup valuation, with investors and founders frequently mixing up markets, business models, industries, and underlying technologies. Equidam Category List ) Development Stage (Intrinsic Risk Factors) Development Stage focuses on intrinsic risk factors tied to the startups maturity.

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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.,