A Historical Exit-Based Cash Flow Approach to Valuing pre-revenue Direct-Air-Capture (DAC) Start-Ups

Valuing early-stage, pre-revenue companies, particularly those in the nascent field of Direct Air Capture (DAC), is a formidable challenge. These companies often find themselves in pre-pilot, pre-revenue stages, making traditional valuation methods less applicable. However, this paper presents a pioneering valuation methodology tailored to address this challenge. Drawing inspiration from the remarkable exit event of a 15-year-old startup in the same industry, we illuminate a path for valuing early-stage DAC companies. By leveraging this historical reference, we navigate the complexities of assessing potential value in a landscape dominated by pre-revenue startups, offering a vital tool for stakeholders, investors, and enthusiasts seeking to understand the promise of this emerging field. It is important to note that this analysis serves as a starting point for further valuation exploration, recognizing that the dynamic nature of startups may require ongoing assessments and adjustments.