8 common valuation challenges in venture capital
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8 common valuation challenges in venture capital

6 months ago · 5 min read

Early-stage companies are like teenagers, according to Antonella Puca, CPA/ABV/CEIV. “They have tremendous potential,” she said, “but we don’t know how it will be fulfilled.” Given the volatile and uncertain prospects for early-stage companies, valuation professionals approaching valuation of a venture capital deal should be aware of some of the challenges involved.

Predicting the future

“By definition, an early-stage company is not profitable, has negative cash flow, and will need to rely on capital from investors to support it,” noted

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