The case explores the methodologies for valuing an early stage, IP based business. Endomagnetics is a university spin-off based on technology from University college London. By the time of the case the business has raised (and largely spent) a seed round and is about to raise ‘Series A’. The new CEO, Eric Mayes, is in discussion with investors. There is some interest and he knows that he’ll soon need to propose – and justify – a pre-money valuation. He has the usual set of base assumptions on market size and penetration along with information on similar businesses. The question is how he can assemble this information to produce a valuation. The case uses a series of spreadsheets (created by a MBA intern as it happens) that take us through all the alternatives from detailed bottom-up ‘decision –tree’ methods through to more sweeping market comparables, examining the strengths, practicalities and limitations of each approach.