Valuation methods used in seed stage companies
  • Updated on 02 Jul 2019
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Valuation methods used in seed stage companies

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One of the main points that you will be discussing once you meet with investors is the valuation of your company. This article sums up the numerous methods that can be used to do a valuation for your business when talking to investors. Remember a valuation is considered both science and an art. At the end, it all comes down to your negotiation skills with the investors.

The 9 methods you will learn about in this article are:

  1. Berkus Method
  2. Risk Factor Summation Method
  3. Scorecard Valuation Method
  4. Comparable Transaction Analysis
  5. Book Value Method
  6. Liquidation Value Method
  7. Discounted Cash Flow Method
  8. First Chicago Method
  9. Venture Capital Method
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