General VC Questions

What are your preferred methods of company valuation for an early stage firm w/ no revenues? Comps, the VC method, scorecard method, etc.?

Asked by:
Community Member
Jan 25, 2024
1 answer
Accepted Answer
Feb 21, 2024
Though there are "standard seed-stage valuation methods" (Comps, VC, Scorecard, Berkus) valuation at early stage (pre-revenue) is a bit more art than science, a balance between optimism and delusion and between strategy and tactics. Factors include:
  • Team - their ability to build a company to execute
  • Target market(s) size(s)
  • Potential for the startup to dominate, create or disrupt the market for substantial revenue
  • Unique Value Proposition, and is it compelling to potential customers
  • What is the Go-To-Market strategy
  • What are the economics
  • A realistic understanding of the competitive landscape
  • What is the capital investment required to get to milestones:  Proof-Of-Concept, Minimum-Viable-Product, Product-Market-Fit
  • What is the technology and does it scale
  • What is the intellectual property
  • What are the risks
  • Exit potential

Log In or Sign Up

Please Log In, or Sign Up to participate in the discussion.

Apply to VC Lab Cohort 15

Get full access to Decile Base and the Decile Hub venture platform for free by joining the VC Lab program.

Apply to VC Lab Cohort 15