What is the Venture Capital Startup Valuation Method?
Esteban Sastre
Software Engineer | Software Architect | Hands-on tech and product solving
The last one of the pre-money, pre-revenue startup valuation methods I've been covering, the?Venture Capital?method is the preferred method for VCs all around (that's pretty much from where it got the name).
Deal sourcing entails a long process of discovery and analysis of potential startups to incorporate to a VC portfolio. When it comes to pre-revenue startups there is also a void of financial data to extract projections, thus the analysis must rely on more qualitative methods, and those are by nature slower to evaluate.
The?Venture Capital?valuation method provides a simple solution to get a ballbark valuation of any startup.