Applied Machine Learning Models For Improved Startup Valuation.

Determining the valuation of an early-stage Startup is in most cases very challenging due limited historical data, little to no existing revenues, market uncertainty and many more. Traditional valuation techniques, such as Discounted Cash Flow (DCF) or Multiples (CCA), therefore often lead to inappropriate results. On the other hand, alternative valuation methods remain subject to an individual's subjective assessment and a black box for others. Therefore, the underlying study leverages machine learning algorithms to predict a fair, data-driven and comprehensible startup valuations. Three different data sources are merged and applied to three regression models.