Startup Funding Espresso -- Venture Capital Method for Valuation
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The Venture Capital method of valuation uses a discounted cash flow combined with a multiples-based valuation.\xa0 The valuation takes into account cash flows in a best case, medium case, and worst-case scenario. It then uses an industry multiple to set the anticipated sell price. The cash flows and exit price are discounted giving three valuations - one for each scenario.\xa0 Then each one is assigned a probability giving the final value with a probability-weighted sum of the three. This method works well for growth companies and is better than a straight discounted cash flow because it factors in multiple scenarios.\xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group Music courtesy of .