How do you value a startup without using revenue projections?

_This is a revision of Amit’s Question from Tues May 8, 2007_

Every startup wants to believe that they are unique and revolutionary, it is no different in our case. We do have a business model and revenue projections but after reading several articles on startup valuation and listening to Guy Kawasaki, it seems like basing your valuation on revenue projections is not a sound strategy. Investors seem to prefer something more tangible, ie. assets, patented technology, user base, etc. Our competitors are privately-held, so we have no information on their revenue or other metrics to use to build a comparative valuation for our company.
Let me rephrase the question:
What are rules for a startup to build a sound valuation without using revenue projections?
What are the assumptions one should take into account?
When you are approaching angels and have no revenues or patents or other comparative metrics as yet, how do you justify 10% equity with X dollars? Is it OK to just base it on revenue _projections_?

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