At some point in the technology transfer process, the issue of valuation arises. When you are licensing your technology, the value of the technology determines how much money you can (should) charge for it. When you are starting up a business, the valuation is the basis on which shareholding by investors is determined (in other words, how much of the company do they get for how much money?). As would be expected, this is thus usually quite a contentious issue and in the end one arrives at a negotiated value that is somewhere between where each party would have liked to set the value.
There are different ways to do a technology valuation. The valuation must be discounted for various risk factors (in other words, risks decrease the value).