Startup Valuation Calculator
Estimate startup valuation with revenue multiple, Berkus (pre-revenue), or Scorecard.
Written by Golam Rabbani, Founder & Lead Engineer
How to use this startup valuation calculator
- Pick a method: Revenue multiple (post-revenue), Berkus (pre-revenue), or Scorecard.
- For Revenue multiple, enter annual revenue, the comparable multiple, and growth rate.
- For Berkus, score five risk-reducing factors at $0-$500k each, max pre-money $2.5M.
- For Scorecard, enter regional average pre-money and rate seven factors vs. peers (100 = average).
- Press Estimate valuation, then Copy or Reset.
About this startup valuation calculator
No formula prices a private startup correctly — investors do. These three methods are widely-cited frameworks for producing a defensible estimate. The Revenue Multiple method applies a comparable multiple (SaaS 5-15×, services 1-3×) to annual revenue, adjusted by growth. The Berkus Method (Dave Berkus, 1996) values five risk buckets at up to $500,000 each, capping pre-revenue valuation at $2,500,000. The Scorecard Method (Bill Payne, Angel Capital Association) starts from the regional average pre-money for similar stage/sector and scales it by seven weighted factors: management (30%), opportunity (25%), product (15%), competition (10%), marketing (10%), need for funding (5%), other (5%).
Worked example (Scorecard). Regional average pre-money for seed software in your geography is $5,000,000. You score management 125, opportunity 110, product 100, competition 90, marketing 100, funding 100, other 100. Factor = 0.30×1.25 + 0.25×1.10 + 0.15×1.00 + 0.10×0.90 + 0.10×1.00 + 0.05×1.00 + 0.05×1.00 = 1.06. Valuation = $5,000,000 × 1.06 = $5,300,000. Run the same inputs through Berkus to see whether your risk-reduction story alone supports a similar number.
Always cross-check with a comparable transactions list before quoting a number to investors.
FAQ
- Which method should I use?
- For pre-revenue startups use Berkus or Scorecard. For revenue-generating startups, lead with a revenue multiple from comparable transactions and cross-check with Scorecard. None of these replace negotiation with actual investors.
- What revenue multiple should I pick?
- Use comparable transactions in your category. As of recent public-market data: SaaS often trades at 5-15× ARR depending on growth; marketplaces 3-8×; services 1-3×. The growth field bumps the multiple modestly when growth exceeds the category median.
- Why does the Berkus method cap each bucket at $500,000?
- Berkus designed the method to produce a maximum pre-revenue valuation of $2.5M ($500k × 5 buckets). This cap reflects the reality that pre-revenue startups carry irreducible execution risk and rarely deserve a higher valuation regardless of pedigree.
- How do Scorecard scores work?
- A score of 100 means the factor is on par with comparable startups. 125 means stronger than average; 75 means weaker. Multiply each score by its weight and sum to get a scaling factor applied to the regional average pre-money.
- Are these valuations defensible in a term sheet negotiation?
- They are starting points, not final answers. Investors will run their own model based on dilution targets, fund return requirements, and comparable rounds. Use these methods to triangulate a range, then negotiate.
- Does this tool send my financials anywhere?
- No. Everything is computed locally in your browser; nothing is uploaded.