Some of these models depend on certain aspects of venture capital. When it comes to venture capital valuation, there are several models or methods available. Consider multiples depending on the level, industry, and location of business.Select a proper valuation technique for the business.Guidelines for VC valuation to follow before calculationīefore attempting valuation calculations, here is a step by step guide to follow: The return on investment (ROI) is a function of how investors perceive risk. The Rate of Return, also known as the Rate of Investment, is typically represented as a multiple of the initial investment. This is usually computed using the Venture Capital approach as a multiple of the company’s revenues in the year of sale. The Exit Value (EV), also known as the Terminal Value, is the estimated price for the company to be sold or an investor leaves. Exit Value / Expected Return on Investment = Post-money Valuation (RoI).
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