Any risk a business faces with regard to its (potential) customers, e.g. whether they will buy the product being developed, whether the market will experience crises or shrink permanently, etc.
Subordinated debt or preferred equity that is payable after senior debt has been paid, with an option to convert subordinated debt into equity if debt obligations are not met. Related: Financing rounds
Please see Stages
Milestones are defined (planned) major achievements. In the context of investing, they can be used as conditions with tranches or ratchets.
A variation of the Berkus method for placing a financial value on pre-revenue startups. A major motivation is to take changed market conditions into account by reducing each driver to a maximum of $500k. The method has also been modified to include entry barriers and strategic alliances. Related: Modified Berkus method
A valuation that uses multiples or relative valuation is a method of estimating the value of an asset by comparing it to the market value of similar or comparable assets on the basis of defined indicators (e.g. revenues or profits).