Is it considered best practice to account for significant non-dilutive grant monies in a markup valuation, e.g., in the range of $1.5M - $2.5M?
Non-dilutive funding, such as grants, does not directly affect equity or ownership percentages, but it can positively impact a company's valuation by improving its financial position and reducing the need for additional equity financing. However, it is not typically included in a markup valuation, which is often based on equity financing rounds. Non-dilutive funding can enhance a company's attractiveness to investors by extending its runway and supporting growth without diluting existing shareholders.
