This refers to the valuation of startups that are in the early or growth stage of their business life cycle. In such cases, the company may not have long profit history, so the valuation focuses on future potential—market size, business model, traction, unit economics, and scalability. Methods such as DCF, scorecard, venture capital method and comparable transaction multiples are commonly used to estimate a fair value for equity before funding rounds.

Valuation for seed, Series A/B/C funding, growth-stage investments, ESOP buybacks, and entry/exit pricing.