Methodology

1. Data sources

Underlying data is sourced from FactSet, augmented with other publicly available data and authorised reported financials from companies themselves. Companies are allowed to share financial data ahead of official Companies House publication should they wish.

Where announced rounds and valuations are not led by an institutional investor, we may remove such data points from our data set.

2. Approach for calculating valuation estimates

The Cambio private company valuation model provides annual valuation updates for companies where funding rounds have not been completed within the last 18 months.

• Valuations can be calculated once annual results have been reported to Companies House, or alternatively once submitted to Cambio Partners.
• FY1 is the financial year for which reported numbers are available from the company — actual revenue, margins, and growth, not forecasts.
• Valuation date is nine months into that financial year (FY1). On the model schedule this is the prior fiscal year-end (FY0) plus nine months — for a December year-end company, 30 September of the FY1 year.
• The valuation is dated to that nine-month point but is only published once full-year FY1 results are available in our data (typically after the fiscal year-end has closed and been reported).

The timing is structured as if the valuation were based on estimates: sector multiples are taken as of the valuation date and labelled FY1 in the model. In practice, the company inputs (revenue, growth, and gross margin) are drawn from reported actuals for FY1. That distinction matters — the valuation is anchored on audited or company-submitted results, not projected financials. The same framework can be extended later to support estimate-based valuations at more frequent intervals, when forward-looking inputs would make the model more up to date between annual reporting cycles.

Calculation is:

Post money valuation = SRM × GF × REV × GMF

• SRM = Sector revenue multiple FY1 = weighted average (excl. outliers) FY1 revenue multiple for sector as of valuation date
• GF = Growth factor = (1 + Company revenue growth rate − Sector revenue growth rate)
  • Company revenue growth rate = higher of (1 year revenue growth from FY0:FY1) or (2 year revenue growth CAGR FY−1:FY1)
  • Sector revenue growth rate = weighted average (excl. outliers) FY1 revenue growth for sector as of valuation date
  • GF must not exceed 2 and should not be less than 0.5
• REV = Company FY1 revenue
• GMF = Gross margin factor = Gross margin company FY1 ÷ Gross margin sector FY1
  • Gross margin sector = weighted average (excl. outliers) FY1 gross margin for sector as of valuation date

Adjustments

• Floor. The model output for any valuation point is floored at 40% of the previous valuation point — typically the prior year's model estimate, or otherwise the post-money valuation from the last funding round before that date. When reported revenue is available and the revenue-multiple formula yields a result lower than this floor, the valuation will be set at the 40% floor value.
• Non reporting. When reported revenue is not available, the model cannot be run on fundamentals. Once more than 18 months have passed since the last disclosed round and there has been no financial reports filed, we revise the valuation to 40% of the previous valuation point (e.g. a $1bn round would mark to $400m). Where companies have previously reported financials, but more than 9 months have passed since the last year end and there has been no financial report filed, we also revise the valuation to 40% of the previous valuation point.
• PE cap. For companies more than 15 years old with FY1 revenue growth below 30% and positive FY1 net income, the valuation is capped at sector PE FY1 × growth factor × FY1 net income when that cap is lower than the revenue-multiple result (after the floor is applied).

3. CQ (Cambio Quality) Qualification tests

Companies qualify if they meet these criteria:

• Have completed a $100m+ funding round at valuation in excess of $1bn led by high quality institutional venture & growth investors
• Last financial year revenue in excess of $50m
• Last financial year revenue growth in excess of 20%
• Last financial year rule of 40 in excess of 30
• Last round valuation is supported by rules-based valuation (taking into account most recent financials and changes in public sector multiples)

Rule of 40 is calculated as 1 year revenue growth rate + net profit as % of revenue and is as such a best estimate without the full financial disclosures required for a calculation using EBIT margin rather than net profit as % of sales.

4. IRR calculations

Indicative IRR measures the compound annual growth rate between a reference valuation and the latest Cambio valuation. It is illustrative only and does not represent realized investor returns, which depend on entry price, fees, dilution, liquidity events, and timing.

• Reference valuation. Either the unicorn-round post-money valuation, or the CQ qualifying valuation, depending on the comparison basis selected in the dashboard.
• Start date. The unicorn round date when comparing to the unicorn round; the CQ qualifying fiscal year-end when comparing to the CQ qualifying valuation.
• End date. The current date.
• Formula. Indicative IRR is calculated only when both valuations are positive and the elapsed period is at least two years:

IRR = (Latest valuation ÷ Reference valuation)^(1 ÷ years) − 1

Where years is the elapsed time between the start and end dates. Aggregate indicative IRR shown in dashboard totals is the equal-weighted average of non-null company-level indicative IRRs (not a dollar-weighted portfolio return).

This methodology may be updated from time to time. See also our disclaimer.