assuming the startup business has revenue/cash flow, you still can't calculate the company value soly based on discounted cash flow－－- becasue there are so many uncertainty with startup+IT. The risk factor R is just difficult to factor in.
for example, do you really think google worth that high stock price ? Its main revenue channel are online advertisement, cash flow from this channel can't sustain its high price (whatever R you ｓｅｌｅｃｔ). I think stock holder (most of them are institutioanl) must have taken the management team into their value calculation (although their calculation maybe wrong)
