Valuation Calculator

Calculate startup valuations using multiple proven methods

About Venture Capital Method

This method estimates pre-money valuation based on expected exit value and required return on investment.

💡 How to Use This Calculator

Watch a step-by-step walkthrough of the VC valuation method

Step-by-Step Guide:

  1. Enter Exit Value: Estimate what the company will be worth when you exit (e.g., acquisition, IPO)
  2. Specify Time Horizon: Enter how many years until the expected exit event
  3. Choose Return Method: Select whether you want to specify your target as an annual ROI percentage or as a total return multiple (5x, 10x, etc.)
  4. Enter Your Target: Input either your desired annual ROI % or your target multiple depending on your selection
  5. Input Investment Amount: Enter how much capital you plan to invest
  6. Review Results: The calculator will show you the pre-money valuation and a detailed 5-step breakdown of how it was calculated
💡 Pro Tip: Use the "Target Multiple" option if you think in terms of "I want a 10x return" rather than calculating the equivalent annual ROI percentage.
Estimated company value at exit
Expected time to exit event
Annual return on investment target (e.g., 30% = 1.3x per year)
Amount you plan to invest
Pre-Money Valuation
$0

📊 Calculation Steps

Step 1: Terminal Value $0
Formula: Expected Exit Value
Step 2: Required Multiple 0x
Formula: (1 + ROI%)^Years
Step 3: Post-Money Valuation $0
Formula: Terminal Value ÷ Multiple
Step 4: Ownership Required 0%
Formula: Investment ÷ Post-Money Valuation
✅ Step 5: Pre-Money Valuation $0
Formula: Post-Money - Investment
About Scorecard Method

This method adjusts a baseline valuation based on key startup success factors compared to industry averages.

💡 How to Use This Calculator

Watch a step-by-step walkthrough of the Scorecard valuation method

Step-by-Step Guide:

  1. Find Baseline Valuation: Research average pre-money valuations for similar startups in your region and industry
  2. Rate Team Strength (30%): Compare the founding team's experience and capabilities to industry average (100 = average, 120 = 20% above average)
  3. Rate Product/Technology (25%): Assess the uniqueness and defensibility of the product or technology
  4. Rate Market Opportunity (15%): Evaluate the size and growth potential of the target market
  5. Rate Competition (10%): Assess the competitive landscape and barriers to entry
  6. Rate Sales/Traction (10%): Evaluate current revenue, user growth, and market traction
  7. Rate Other Factors (10%): Consider additional factors like partnerships, IP, or strategic advantages
  8. Review Results: The calculator will show the adjusted valuation based on weighted scores
💡 Pro Tip: Be honest and conservative in your ratings. Overestimating factors can lead to unrealistic valuations. Use 100 as your baseline and only go higher if there's clear evidence of above-average performance.
Average pre-money valuation for similar companies in your region

Rate Each Factor (0-150%)

100 = average, >100 = above average
Adjusted Valuation
$0
Baseline Value: $0
Adjustment Factor: 100%
Weighted Score: 0
About DCF Method

Discounted Cash Flow method values a company based on projected future cash flows discounted to present value.

💡 How to Use This Calculator

Watch a step-by-step walkthrough of the DCF valuation method

Step-by-Step Guide:

  1. Project Cash Flows (Years 1-5): Estimate free cash flow for each of the next 5 years based on revenue projections, costs, and capital expenditures
  2. Set Discount Rate: Enter the risk-adjusted discount rate (typically 20-40% for startups, reflecting high risk)
  3. Set Terminal Growth Rate: Enter the long-term growth rate beyond year 5 (typically 2-5%, reflecting mature company growth)
  4. Calculate: The calculator will discount all future cash flows to present value
  5. Review Results: See the present value of cash flows, terminal value, and total enterprise value
💡 Pro Tip: DCF is most reliable for companies with predictable cash flows. For early-stage startups with no revenue, consider using VC Method or Scorecard Method instead. Higher discount rates reflect higher risk and result in lower valuations.
Risk-adjusted rate (typically 20-40% for startups)
Long-term growth rate (typically 2-5%)
Enterprise Value
$0
PV of Cash Flows: $0
Terminal Value: $0
PV of Terminal Value: $0

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