Valuation Methodology Guide
We use 11 industry-standard valuation methods, each calibrated for European markets using our 5-tier geographic taxonomy. Every model accounts for the realities of EU, UK, and emerging European ecosystems — from lower exit multiples to longer fundraising cycles and the 29–52% discount compared to US benchmarks.
Berkus Method
Learn how the Berkus Method values pre-revenue European startups by assigning up to EUR 400K across five risk-reduction factors, capped at EUR 2M.
Pre-seed
Seed
Geo: Low
Scorecard Method
Discover how the Scorecard Method uses regional median valuations and weighted criteria to value pre-seed and seed European startups.
Pre-seed
Seed
Geo: High
Risk Factor Summation
Explore how Risk Factor Summation adjusts a base median by scoring 12 risk factors, including EU-specific GDPR and grant considerations.
Pre-seed
Seed
Geo: High
Venture Capital (VC) Method
Understand how the VC Method calculates pre-money valuation using European exit multiples, longer time-to-exit, and realistic return targets.
Pre-seed
Seed
Series A
Geo: Medium
Revenue Multiple
Learn how Revenue Multiple valuation applies geography-adjusted multiples to ARR for European startups from seed to Series B.
Seed
Series A
Series B
Geo: Medium
Discounted Cash Flow (DCF)
Explore how DCF analysis values later-stage European startups using a 7-year projection horizon and country-specific risk premiums.
Series B
Series C+
Geo: Medium
First Chicago Method
Understand how the First Chicago Method values European startups using probability-weighted best, base, and worst-case scenarios.
Seed
Series A
Series B
Geo: Medium
Cost-to-Duplicate
See how Cost-to-Duplicate estimates European startup value based on replacement costs for IP, code, data, and regulatory approvals.
Pre-seed
Seed
Geo: Medium
Ownership / Check Size Target
Learn how the Ownership Target method derives valuation from European investor ownership norms and typical check sizes per stage.
Pre-seed
Seed
Series A
Series B
Series C+
Geo: Low
Earnings / EBITDA Multiple
Discover how EBITDA multiples from European M&A benchmarks value later-stage startups with positive earnings.
Series B
Series C+
Geo: Low
Comparable Transactions
Learn how Comparable Transactions values European startups using real deal data from the same regional tier and sector.
Seed
Series A
Series B
Geo: High