What are the types of valuation for a start-up unit? Give any five methods.

Start-up Valuation Methods are as under: Venture Capital Method: is used to arrive, at the preliminary valuations for starts up which are yet to generate revenues. Formulas: Return of Investment = Terminal Value / Post Money Valuation Post Money Valuation = Terminal Value / Anticipated ROI. Berkus Method assigns a range of value to the valuation of the start-up based on the progress that the start-up owners have achieved in getting the start-up off to a start. Scorecard Valuation Method: The average pre money valuation of other starts up on the same vertical arrived at and this valuation is then used to value the start-up that is looking for investment. Risk Factor Summation Method: The value is to be adjusted for 12 risk factors inherent to the startup. Cost to Duplicate Method: Start up value is based on the cost that it would take to duplicate the starts up assets elsewhere. It does not consider future earnings. It is conservative valuation method. Valuation by stages: When start-up is in the advanced stage, lesser risk that an investor in taking. This method is used by venture capitalist and angel investors. Comparable Method: Valuation is based on precedent transactions, and key ratios within a particular sector. The Book Value Method: Net worth is considered. First Chicago Method: This method recognizes the fact that start up is a high-risk investment and there is a high probability that they may grow beyond expectation and equal chances that they may fail badly. Under this method, three valuations are provided Worst-cause scenario Normal cause scenario Best cause scenario.