Valuation methods & enterprise value · Working

Venture-capital method

Also called: VC method

ELI5

A startup valuation method working backward from an assumed exit value and target investor return.

Used in conversation

“The range matters more than a false point estimate for venture-capital method.”

Pitch context

You will see “Venture-capital method” in financial models, budgets, board packs and investor materials when the discussion reaches valuation methods & enterprise value.

Why it matters: In valuation methods & enterprise value, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.