How Startup Valuations Work | The Fundamentals You Need to Know

👉 Want more help for your startup? Learn more about how you can work with our Ventures Team: wantsomehelp.engenesis.com 👉 Interested to identify opportunities for your startup's growth? Learn more about our 10-day Engenesis Venture Growth Intensive program: vgi.engenesis.com 👉Learn more about Engenesis Ventures: ventures.engenesis.com 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.