🦄Startup Valuation Calculator

About this tool

Fill in the inputs for each method: current recurring revenue and a comparable multiple; an expected exit (revenue and multiple), the return investors target, expected future dilution and this round's investment; and the median pre-money for similar startups with your scores on weighted factors. You'll see each valuation and the overall range.

Three ways to value an early-stage startup

Young companies have little profit history, so valuations come from comparisons and expectations rather than a formula. The revenue multiple applies what comparable companies are valued at relative to their revenue: 600,000 of ARR at 6× is 3.6 million. The VC method starts from a realistic exit, say 20 million of revenue at a 4× multiple, which is an 80 million exit. It divides by the return early investors need to make their portfolio work (around 10× for seed, lower for later rounds) and allows for the dilution of future rounds. That gives 80 ÷ 10 × 70% = 5.6 million post-money, so 4.1 million pre-money for a 1.5 million raise. The Scorecard method (Bill Payne) takes the median pre-money of recently funded startups in your region and sector, then adjusts it for how you compare on weighted factors: team 30%, market size 25%, product 15%, competition 10%, marketing and sales 10%, need for further funding 5% and other 5%. Here those scores give 1.18 × 5 million = 5.9 million. Presenting a range backed by several methods makes negotiation more grounded. Honest limits: these are rules of thumb. Market conditions, traction, competition between investors and deal terms (liquidation preferences, SAFEs with caps) often matter as much as the headline number. This isn't financial advice. The equity dilution calculator, the SaaS metrics calculator and the runway calculator are related.

Frequently asked questions