Warren Buffet once said:
Buy into a business that’s doing so well an idiot could run it, because sooner or later, one will.
This is a useful way to understand the meaning of “equity value”. You learn in finance that equity value is the overall value of a the stock (i.e. equity) of a business, which in turn is the present value of all future profits. Of course with startups the future is extremely uncertain, leading to a huge variance in valuations.