Valuation Techniques for Early-Stage Venture Capital Investments

In the context of valuing alternative investments, particularly private equity, several valuation techniques can be employed to determine a fair market value. One common approach is the use of Discounted Cash Flow (DCF) analysis, which forecasts the expected cash flows of the investment and discounts them to present value. However, private equity firms often employ different valuation multiples based on comparable companies within similar industries.

Which of the following valuation techniques would be the most relevant when conducting a valuation of a venture capital investment that is at an early stage of development and has irregular cash flows?