Early-Stage Business entities refer to businesses or enterprises in their startup stage of development. The size of such businesses varies significantly across jurisdictions. Investments in early-stage businesses carry high risks because such businesses have no track record and may be speculative with unreliability in cash flows, and other prevalent risk elements. Early-stage businesses are also referred to as startup businesses. Because of the lack of historical cash flows, business valuators rely on the market methods or discounted cash flow method when valuing early-stage businesses.