#BiotechValuation

[evolveventurecapital]

How to Value a Pre-Revenue Biotech Startup

It is difficult to value a biotech startup with no revenues. Unlike e-commerce or SaaS, early biotech companies tend to rely on intellectual property and clinical potential. The most popular techniques are Risk-Adjusted Net Present Value (rNPV), Venture Capital Method, and Scorecard Valuation. rNPV discounts projected future cash flows by clinical success probabilities at every stage (FDA approval, Phase I-III, preclinical). The VC Method uses exit value revenue multiples, dilution adjusted and time adjusted. Scorecard Valuation compares your startup to similar deals in the industry.Biotech Valuation Methodologies also consider IP strength, clinical trial stage, and management heritage. Expect intense due diligence—biotech investors go deep.