Assigning a valuation to your startup is not easy. From team capacity to product development to competition to market size, there are several factors that go in to choosing a valuation. And, these valuations are not "one size fits all."
An article by Stéphane Nassar offers nine methods startups can use when discerning the most appropriate valuation. These methods, as explained in the article, are:
1. The Berkus Method 2. The Risk Factor Summation Method 3. The Scorecard Valuation Method 4. The Comparable Transactions Method 5. The Book Value Method 6. The Liquidation Value Method 7. The Discounted Cash Flow Method 8. The First Chicago Method 9. The Venture Capital Method
The article closes, noting, "Valuations are a good starting point when considering fundraising. They help build up the reasoning behind the figures and objectify the discussion. But in the end, they are just the theoretical introduction to a more significant game of supply and demand."