The venture capital valuation method which capitalizes earnings using a cap rate implied by a comparable ratio is known as direct capitalization.

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This statement is accurate. Direct capitalization is a method of valuing a business or asset by capitalizing its earnings using a cap rate that is implied by a comparable ratio. This is often used in venture capital to value startups and other high-growth companies.

The Venture Capital Valuation Method Which Capitalizes Earnings Using a Cap