Digital Startup Valuation: Methods for Early Stage and Growth

Digital startup valuation varies drastically by stage: pre-revenue (idea, MVP, no revenue), early stage (first customers, initial revenue, validation), growth (rapid growth, scale, traction), and late stage (maturity, profitability, exit). Valuation methods vary by stage: pre-revenue uses qualitative methods (team, market, product, non-financial traction), early stage combines methods (projected revenue multiples, comps, real options), growth uses more traditional methods (multiples, DCF), and late stage uses established methods (multiples, DCF, comps). This guide details methods for each stage, relevant metrics analysis, impacting factors, risks, and how to structure investments. We include templates, examples, case studies, and investor insights.