BSP:Brainspark - Technology start-up incubator

Bowlhead
The $10m comes from the conversion of the exclusivity payments into equity in a new company.
RNS from August
'On signature of formal documentation, the Firm has agreed to pay Geosim
US$240,000 in respect of the first three calendar months of the Exclusive Period
(the "Pre-Payment"). The Firm has further agreed to pay Geosim an additional
US$80,000 for each of the next six months, for a total of US$720,000, including
the Pre-Payment (the "Exclusivity Payment").

In addition, exclusivity on videogames applications will be granted to a new
company, a third of whose equity will be owned by the Firm, subject to the Firm
bringing material business within one year after the end of the Exclusive
Period.

The Exclusivity Payment will be converted into equity at a valuation to be
agreed, to be not less than US$10,000,000.'

Dusseldorf
I've only included half the value of the investment in Geosim as 50% is being sold to Crash. You could argue that their remaining 50% should be revalued to a much higher valuation.
Yes you would discount down the NAV by your suitable level of risk to reach a target, personally I would use 20% to get a target of 2.6p.