Hello,
Is it safe to say that the venture capital mode for valuation would be the most appropriate for firms that are in the early stages of growth (and are expecting to see high growth in the near future)?
Relative to the DCF method, the venture capital method is meant for companies that do not have a long history of cash flows (may even be cash flow negative since they are in the early stages of operations) and thus we must value based upon the venture capital mode in order to compute a reasonable valuation for a start up company that is still in the very early stages of operations?