Understanding Early-Stage Startup Valuation: Essential Methods for Founders & Investors
Valuing an early-stage startup diverges sharply from assessing mature companies. Startups often operate with minimal revenue, untested business models, and high failure risk—turning valuation into an art as much as a science. Future potential outweighs historical performance.
The absence of financial history complicates judgments on growth trajectories and cost structures. Traditional valuation methods falter without this data, forcing investors to rely on forward-looking metrics and market potential.