DCF in Startup Valuation

Question: Why would you use financial methods for the valuation of a startup company? Answer: Because the public market uses it for valuations. And more in depth, for these 2 reasons: 1| The public market has an effect on private valuations With public market we mean companies traded on the various stock exchanges. They are usually large, but a small percentage of their shares is traded…

DCF Valuation for Startups

We already talked about projections, cash flows and relevant topics surrounding startup financial valuation. But how do you convert all these parameters to the future to calculate the value of the company today? One of the major methods to be used is called Discounted Cash Flow (DCF). What is DCF? To start, check out this tutorial from Investopedia to get a general idea of what DCF is.…

Brand Value Within Startup Valuation: The Inseparable Asset

When Warby Parker launched in 2010, their website crashed just after their official launch, their top 15 most popular styles sold out within four weeks, and they collected a staggering 20,000 customer waitlist during that time. This wasn't just about selling eyeglasses—it was about a brand so compelling that customers were willing to wait months for a product they'd never physically tried. Today,…

Startup Survival Rates: The Risk Factor in Valuation You Should Think More About

When Y Combinator's demo day showcases 250 promising startups to a room of eager investors, there's an uncomfortable truth lurking beneath the pitch decks and growth projections: half of these companies will fail, with 1 in 5 shutting down within the first 12 months. Outside of Y Combinator, the rate is higher. Yet most valuation models treat survival as a binary outcome—either the company…

The AI Agent Valuation Challenge: Why 2025’s Digital Natives Need New Rules

When Phonic raised $4 million in April 2025 for its end-to-end speech-to-speech platform, it wasn't just another AI funding round. It represented something fundamentally different: the emergence of companies building not just software, but autonomous agents that promise to replace entire human workflows. As we reach the midpoint of 2025, the startup ecosystem is witnessing a profound shift from…

Down Round Valuation: How to Survive and Protect Your Equity (2025)

Down rounds hit 22% of all VC deals in Q2 2024—down from a peak of 33% in Q1 2024, but still the highest sustained level since the 2008 financial crisis. If you're a founder facing this reality, you're not alone, and more importantly, you're not doomed. The end of the ZIRP (Zero Interest Rate Policy) era has created a valuation reset that's forcing founders into down rounds, threatening equity…

AI Startup Valuation: Why Revenue Multiples Don’t Work in 2025

The crude shortcuts that dominated the ZIRP era are finally colliding with economic reality When OpenAI announced spending over $5 billion on compute against $4.9 billion in revenue, it exposed more than just the economics of foundation models. It revealed the fundamental bankruptcy of revenue multiple valuation—that beloved shortcut of the zero interest rate era that treats all revenue as…

Deep Tech Valuation: Using Technology Readiness Levels

Early-stage valuation has always been about capturing potential before it becomes obvious. For deep tech startups—companies developing breakthrough technologies in areas like quantum computing, advanced materials, biotechnology, and cleantech—this challenge becomes even more complex. Unlike software startups that can iterate rapidly and achieve product-market fit within months, deep tech…

How to Get a BSPCE Valuation for Your Startup’s Employee Share Plan

BSPCE (Bons de Souscription de Parts de Créateur d’Entreprise) are a special type of employee stock warrant unique to France. They give employees the right to buy shares of a startup in the future at a fixed price, known as the strike price. French startups widely use BSPCEs as part of their compensation strategy to attract and retain talent, because they allow employees to share in the…

BSPCE French Companies

Our exclusive french partnership with Futurz Futurz brings: Expert knowledge of French tax regulations BSPCE and equity compensation specialists Direct experience with AMF guidance Premium EMI valuations backed by Standard Ledger Standard Ledger brings: Deep experience with UK startup ecosystem HMRC compliance expertise End-to-end EMI implementation support…