A ‘Radical’ Market Data Approach to Startup Valuations

Business Valuation UpdateVol. 28 No. 4
April 2022
market approach
early stage companies, private company transaction data, market approach, public company data, dealstats, guideline public company method (GPCM)

Summary

Michael Blake (Brady Ware & Co.) has issued a challenge to appraisers of early-stage companies: add rationality to valuing startups by relying more heavily on market inputs. The income approach is not always effective in prerevenue situations, so Blake turns to guideline public-company and transaction method alternatives.