How Startup Valuations Work | The Fundamentals You Need to Know

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What are the mechanics behind how startup valuations work? In this video, you'll get a run-through of the fundamentals to build your understanding of how investors approach startup valuations.

Resources mentioned in this video

Valuation Methodologies
https://www.equidam.com/methodology/

Valuation Multiples
https://www.equidam.com/ebitda-multip...

Valuation Statistics Quoted
https://skyblueanalytics.com/

Get more resources on startups and entrepreneurship:

The Four Layers of Venture Building: Are you taking them all into account as a startup?
https://engenesis.com/a/the-four-laye...

One reason why up to 42% of startups fail
https://engenesis.com/a/one-reason-up...

Raising funds for your startup? Start here.
https://engenesis.com/a/raising-funds...

Overview

1:54 The 'magic' box analogy
5:22 SaaS revenue multiples
5:43 Valuations of Google, Apple and Meta
8:43 What is the Scorecard Method of startup valuation?
10:27 What is the Discounted Cashflow Method of startup valuation?
11:11 What is the Venture Capital Method of startup valuation?
12:21 What you can do to increase the valuation of your startup

Note: There are some categories of startups that may not fit these models. For example biotech and deeptech where a lot of R&D is required upfront.

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