You will learn to estimate your pre-revenue company valuation using several methods, such as how the pre-money valuation and fundraising target amount align with the investor's expectations for equity ownership, or how is the risk profile of “zero-sales companies” reflected in valuation, and so on.

As very-early stage companies accomplish milestones, such as development of functional minimum-viable products or early customers, the value of company increases, and failing to appreciate a company's specific risk profile can lead to inaccurate assessment of its full value potential in a business exit scenario.

Experienced founders use structured methods to derive their business valuations because the structure formulates a basis to share and sell the value of the business accomplishments and capabilities.