Transactions, public comps, DCF inputs, growth, range, and stretch/worst — investors want triangulation, not one hot comparable.
Layout
Valuation Assumptions
6 blocks · 2-row grid
"Triangulate. One method is opinion. Three converging is a negotiation."
What it is
Six blocks. Comparable Transactions and Public Comps anchor against private and public markets. DCF Inputs surface the assumptions behind a forward-looking value. Growth & Discount Rate justifies the math. Pre-money Range commits to a defensible window. Stretch / Worst Case names the triggers that move you up or down.
Origin
Valuation triangulation was venture-banker discipline first, founder discipline second. Bankers learned that one comparable made for fragile pitches; three methods (transactions + public comps + DCF) survived cross-examination. As founders started running their own rounds, the format moved into the data room.
When to reach for it
Pre-round — you want to walk into pricing conversations with a defended number.
During a round — partners ask "why this valuation?" and you need a one-page answer.
Post-round — you're documenting how the close pricing was reached for the board.
The blocks
Worked example uses A Series A SaaS startup at $5M ARR.
What good looks like
Named companies, dates, round sizes, pre-money. Similarity rationale. Adjustments for difference.
Example — A Series A SaaS startup at $5M ARR
Linear (2022, $35M Series B at $245M, $7M ARR, 250% YoY). Retool (2020, $50M Series B at $200M, ~$6M ARR). Adjust for sector and growth: comparable A pre-money $55–75M.
What good looks like
Named public comps. EV/Revenue or EV/ARR. Growth-adjusted multiple. Stage / liquidity discount.
Example — A Series A SaaS startup at $5M ARR
Public dev-tool SaaS at $50M+ ARR: Atlassian (12× ARR, 30% growth), HashiCorp (9× ARR, 30%), DataDog (16× ARR, 50%). Growth-adjusted at 200% gives 14–18× ARR if you sustain growth. Discount 50% for stage/liquidity → 7–9× = $35–45M pre.
What good looks like
Forecast horizon, terminal growth rate, margin profile, resulting EV range.
Example — A Series A SaaS startup at $5M ARR
5-year horizon. 200% Y1 growth decaying to 40% by Y5. Operating margin -20% Y1 → 20% Y5. Terminal growth 4%. Resulting EV range $50–80M discounted to today.
What good looks like
Growth rate per year, decay schedule, discount rate, sensitivity to both.
Example — A Series A SaaS startup at $5M ARR
Forecast growth 200% / 150% / 100% / 60% / 40% across Y1–5. Discount rate 35% (early-stage Series A appropriate). Sensitivity: -10pp discount = +14% valuation; -25% Y1 growth = -22% valuation.
What good looks like
Low / mid / high range. Anchor methodology. Implied dilution. Walk-away bottom.
Example — A Series A SaaS startup at $5M ARR
Pre-money range $50M–65M. Anchor: growth-adjusted public comps + transactions. Implied dilution 18–23% on a $15M raise. Walk-away below $40M.
What good looks like
Stretch trigger (key contract, breakout metric). Worst-case trigger (churn, market reset). Response.
Example — A Series A SaaS startup at $5M ARR
Stretch ($70M+): one Fortune 500 design partner closes pre-pricing. Worst ($35M): NRR drops below 110% in Q1. Response to worst: cut round size to $9M, slow hiring.
How to use it
Use three methods. One comparable is fragile; three converging is credible.
State the multiple AND the growth that earned it. "8× ARR" without growth context is incomplete.
DCF for startups is directional. State a range, not a precise number.
A range without a walk-away is a hope, not a negotiation.
Common mistakes
Citing one hot comparable as proof of the asking number.
Public-comp multiples applied without growth or liquidity adjustment.
Single point estimate ("we want $X") instead of a defended range.
Spin up the canvas in one click. Copilot will score every cell against the same rubric this guide describes.
Keep reading