Startup Valuation Calculator
Professional valuation tools for startups: Revenue Multiple, EBITDA Multiple, Berkus Method, Discounted Cash Flow, VC Method, Scorecard Method, Pre/Post-Money, First Chicago. Complete the form to access calculators and export results.
Frequently Asked Questions (FAQs) About Startup Valuation
How do VCs value startups?
Venture Capitalists (VCs) often use methods like the VC Method, Scorecard, and First Chicago to estimate startup valuation. They look at growth potential, market size, and risk factors rather than just current revenue.
Which valuation method is best for pre-revenue startups?
For pre-revenue or idea-stage startups, methods like the Berkus Method and Scorecard Valuation are more reliable since they focus on team strength, product readiness, and market opportunity instead of financials.
What is the difference between pre-money and post-money valuation?
Pre-money valuation is the value of your startup before receiving investment. Post-money valuation includes the new investment. For example, if your pre-money valuation is $2M and you raise $500K, your post-money valuation becomes $2.5M.
Why do startups use multiple valuation methods?
No single valuation method is perfect. Founders and investors compare results from multiple approaches (Revenue Multiples, DCF, VC Method, etc.) to arrive at a fair and realistic valuation.
How can I increase my startup’s valuation?
You can boost valuation by strengthening your team, achieving traction (revenue or users), improving your product-market fit, and showing a clear growth strategy. Investors reward startups that reduce risk and demonstrate scalability.