VALUATION OF EARLY-STAGE STARTUPS: PROBLEMS AND MODERN APPROACHES

Abstract

Valuing startups at an early stage is one of the most challenging tasks in finance and investment analysis. Unlike mature companies, early-stage startups usually do not have stable revenues, historical financial data, or predictable cash flows. Their value is largely based on ideas, innovation, team quality, and future growth potential, which are difficult to measure using traditional valuation methods. This article analyzes the main problems associated with early-stage startup valuation and examines modern approaches used by investors, venture capitalists, and analysts. Special attention is paid to qualitative factors, alternative valuation models, and the role of uncertainty and risk. The article also offers practical solutions and recommendations for improving valuation accuracy and decision-making in startup investments.