How do you value a startup with no revenue?
Short Answer
Pre-revenue startups are valued using the Scorecard Method, Berkus Method, or Comparable Transaction approach — all of which focus on the team, technology, market opportunity, and intangible asset quality rather than financial metrics.
Full Explanation
Valuing pre-revenue startups requires different approaches from established businesses. The Scorecard Method compares the startup against comparable funded companies in the region, adjusting the median pre-money valuation based on factors like team strength, market size, technology readiness, and competitive environment. The Berkus Method assigns values (up to £500K each) to five key risk-reduction milestones: sound idea, prototype, quality team, strategic relationships, and product rollout/sales. The Risk Factor Summation method evaluates 12 risk categories and adjusts a benchmark valuation accordingly. The Comparable Transaction approach uses data from similar deals (same stage, sector, geography) to establish valuation ranges. In all these methods, intangible assets are central: the quality of the team, the defensibility of the technology, the strength of early customer relationships, and the brand potential are the primary value drivers. Opagio's questionnaire helps early-stage founders assess their intangible asset portfolio across these dimensions.
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