Free Startup Valuation Calculator

Estimate your startup's value using multiple valuation methods. Compare results from revenue multiples, VC method, Berkus method, and scorecard approach.

Comparable Company Multiples

Select a valuation method and enter your company data

How to Use the Startup Valuation Calculator

Select Valuation Methods

Choose which valuation methods to use based on your stage. Pre-revenue startups should use Berkus or Scorecard methods. Revenue-generating companies can use Multiples and VC Method.

Enter Your Company Metrics

Input relevant data for each method: revenue and EBITDA for Multiples, expected exit and return for VC Method, risk factors for Berkus, or comparison scores for Scorecard.

Adjust Industry Multipliers

Select your industry and growth rate to get appropriate revenue or EBITDA multiples. SaaS companies typically command higher multiples than traditional businesses.

Compare and Triangulate

Review valuations from each method side-by-side. The range provides negotiating context. Use the average or weighted average based on which methods best fit your situation.

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Understanding Startup Valuation

Startup valuation is more art than science, especially for early-stage companies without revenue. Different methods suit different situations, and sophisticated investors use multiple approaches to triangulate a fair value range.

When to Use Each Method

  • Multiples: Best for companies with revenue and comparable public companies or M&A transactions
  • VC Method: Useful when you can project exit value and investors have clear return requirements
  • Berkus: Designed for pre-revenue startups where traditional metrics don't apply
  • Scorecard: Good for comparing against typical deals in your region and stage

Frequently Asked Questions

What methods are used to value a startup?

Common methods include: Comparable Company Analysis (revenue/EBITDA multiples), VC Method (working backwards from exit), Berkus Method (for pre-revenue startups), Scorecard Method (comparing to average deals), and DCF (for later-stage with predictable cash flows).

What is the VC Method of valuation?

The VC Method calculates valuation by working backwards from expected exit. If a VC wants 10x return on $5M investment, they need $50M at exit. If they project $300M exit in 5 years, they need 16.7% ownership, implying $30M post-money today.

How does the Berkus Method work?

The Berkus Method assigns up to $500K value for each of 5 risk-reducing elements: sound idea, prototype, quality team, strategic relationships, and product rollout. Maximum pre-money valuation is $2.5M. Best for pre-revenue startups.

What revenue multiple should I use?

Multiples vary by industry and growth rate. SaaS companies often trade at 8-15x ARR. E-commerce at 2-4x revenue. Fast-growing startups (100%+ growth) command premium multiples. Use comparable public companies or recent M&A deals as benchmarks.

Why do valuations differ so much between methods?

Each method measures different aspects: multiples focus on current metrics, VC method on future potential, Berkus on risk reduction, and scorecard on relative quality. Use multiple methods and triangulate. The final valuation is whatever buyer and seller agree on.