VC Valuation

A tit-bit I picked up on VC valuation of ventures in the seed and early stage:

Some of the valuation errors from the hype years:
Multiples of monthly unique users, eyeballs or web users
DCF on a terminal value
Efficient IPO money machine (I'll explain this one when I understand it)
Valuations based on the latest market transactions - you tend to get caught up in the market frenzy

And a couple of recommended procedures:
Percentage of ownership
A very interesting point - DCF based on the terminal year of the holding period. That means exit forward multiples or compounded hurdle rates
Pre money post money ranges
Comparable company approach - Projected profitability and ratios such as firm value to sales/EBIT/EBITDA
And the final is of course scenario analysis with multiple probabilities