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From the article: "at the early stage, these valuations are generated in an almost entirely automated fashion."

I'm curious, anyone know what the typical formula is?



Take a look at the top voted post on Quora about 409A valuations.

http://www.quora.com/409A-Valuations/What-is-a-good-firm-I-c...


Basically option pricing. Quoting Henry Ward

"There are tons of large and small firms to choose from. Almost all firms valuing early stage companies use the Option Pricing Model (OPM) (Black Scholes or Binomial) valuation method. So if you have a recently priced round, every firm will give you basically the same answer."




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