More than an estimate
Startups valuation should not be performed as a rule of thumb, or with black box practices that leave space for arbitrary conclusions
Traditionally innovative
Traditional valuation approaches are methodological and grounded, but they need to be adjusted to capture the value of startups
Leading valuation approaches, formalized
We analyzed all valuation practices for early stage companies, selected the leading ones and made them available for you.
5 valuation
methods in one
Looking at the business from different perspectives results in a more comprehensive and reliable view. Our methods look at the value of a startup from 3 different points of view.
Qualitative aspects
Scorecard Method
Checklist Method
Developed by renowned American business angels to value the elements that guarantee future success in pre-revenues, early stage companies
Future cash flows
DCF with Long Term Growth
DCF with Multiple
The standard and most traditional methods according to which a company is worth the cash that it’s going to generate in the future
Investors returns
Venture Capital Method
This method takes into account the returns investors expect to earn upon exit in order to have a profitable portfolio
Future cash flows
DCF with Long Term Growth
DCF with Multiple
The standard and most traditional methods according to which a company is worth the cash that it’s going to generate in the future
Investors returns
Venture Capital Method
This method takes into account the returns investors expect to earn upon exit in order to have a profitable portfolio
Qualitative aspects
Scorecard Method
Checklist Method
Developed by renowned American business angels to value the elements that guarantee future success in pre-revenues, early stage companies
Future cash flows
DCF with Long Term Growth
DCF with Multiple
The standard and most traditional methods according to which a company is worth the cash that it’s going to generate in the future
Qualitative aspects
Scorecard Method
Checklist Method
Developed by renowned American business angels to value the elements that guarantee future success in pre-revenues, early stage companies
Investors returns
Venture Capital Method
This method takes into account the returns investors expect to earn upon exit in order to have a profitable portfolio
Read the full methodology
We support and promote transparency – which is why we made our methodology open to everyone.
Compliant with IPEV (International Private Equity Valuation) Guidelines
1400+ investors use Equidam to value opportunities
Investors should be acquainted with our methods, but their practices vary based on professionalism and philosophy.
No matter the methods used, both parties should enter negotiations prepared with their fair valuation so that they openly discuss its assumptions and consciously decide how far they want to go from their ideal case scenario.
“As entrepreneur and investor, I’m using the Equidam report for every fundraising I’m involved in.“
Maarten Timmerman
Founder and CEO at AWAREWAYS
Backed by the most reliable data
Equidam accurately curates and updates data sources of valuation parameters such as multiples and discount rates. They are tailored to 90 countries and 136 industries.
30,000 Companies
We provide updated revenue and EBITDA multiples from a database of globally listed public companies.
Handpicked for startups
From pre-revenue to series A
Qualitative methods to value intangibles
Elements like strength of the team, quality of the idea and barriers to entry are a guarantee of future success, thus valuable per se. Equidam structured commonly used business angels approaches to capture these qualitative aspects.
Yes, DCF for startups
Even at early stage, when forecasts are highly uncertain, Discounted Cash Flow methods remain the only way to incorporate the startup's unique roadmap to growth and cash generation in the valuation.
Suitable for:
Not suitable for:
Liquidating the company
“As a start-up valuations can be contentious, Equidam’s tool provides a clear and objective framework at determining a fair value for a venture”
H’ Tomi Davies (TD), President of the African Business Angel Network (ABAN)
Powerful defaults, and customizable
Equidam is built in a way to allow seamless usage across all levels of financial knowledge and company stage
- Assisted financial projections with industry averages
- Customizable valuation parameters
- Adjustable methods selection
- Adaptable weights of each method
- Ability to deactivate valuation methods
Database of 30.000+ public company multiples
Equidam’s Advanced Multiples tool allows you to build your own set of comparable public companies with a searchable index of public company EBITDA and revenue multiples.
- Select relevant public company comparables
- Include either revenue or EBITDA multiples
- Use the average or median of the group
- Database of multiples updated weekly
- Option to reflect updates in your valuation
Make it worth it
A structured methodology allows you to know the assumptions behind valuation and understand its drivers. This allows you not only to have honest and transparent discussions about it with investors but also to take better strategic decisions.