Valuing AI Companies: Core Principles and Methodologies
Artificial intelligence companies are fundamentally different to value.
Traditional valuation models often fail to capture what actually drives value in AI-led businesses—proprietary algorithms, data assets, scalability, and long-term optionality. As a result, founders and investors frequently enter capital raises or transactions without a defensible valuation framework.
This guide explains how sophisticated investors, acquirers, and advisors approach the valuation of AI companies in practice.
What’s Inside the Guide
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Why AI companies require a different valuation lens
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How valuation approaches change across stages of development
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Key strengths and limitations of common AI valuation methods
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How investors assess data, algorithms, risk, and scalability
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Valuation ranges observed in real AI transactions
Who It Is For
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AI founders preparing for a capital raise or exit
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Investors assessing AI-driven opportunities
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Boards and executives making strategic decisions
About Sherwood Australia
Sherwood Australia is an AFSL-licensed valuation firm specialising in science-driven and technology-based companies across biotech, medtech, diagnostics, digital health, and advanced technology.
We provide independent, defensible valuations for capital raising, licensing, shareholder transactions, and strategic decisions.
Need a Valuation?
We provide fast, professional valuation reports tailored to your needs and sector. Whether you're raising capital, entering a transaction, or simply want clarity on your company’s worth—talk to Sherwood.
Contact Anthony Vago today at anthony@sherwoodaustralia.com.au or +61 406 155 571 for a confidential discussion.
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As part of Sherwood Global Partners, we tap into a powerful international network of corporate finance experts, strategic partners, and investors — bringing global opportunity to every transaction.