Monte Carlo Simulation is a powerful quantitative modelling technique used in startup valuation to assess the impact of uncertainty and variability in various factors influencing a business. The importance of Monte Carlo Simulation lies in its ability to generate many possible outcomes by repeatedly sampling from probability distributions, offering a comprehensive view of potential scenarios. Monte Carlo Simulation provides a probabilistic approach to decision-making by considering the range of possible outcomes, which is particularly vital in the early stages of startups where uncertainties are prevalent. This methodology is essential in diverse industries, including technology, finance, and healthcare, where startups grapple with volatile market conditions and evolving business models. By incorporating the dynamic nature of early-stage ventures and accounting for uncertainties in variables like revenue projections or market demand, Monte Carlo Simulation empowers entrepreneurs and investors to make more informed decisions, optimise strategies, and enhance risk management in emerging industries’ complex and unpredictable landscape.