Startup Valuation Calculator

Estimate startup valuation using revenue multiples by sector and growth rate. Includes DCF Lite (5-year projection), comparable company analysis, and quality-adjusted valuation.

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Valuation (Low)
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Revenue Multiple Range —
Extended More scenarios, charts & detailed breakdown ▾
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Estimated Valuation Low
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Estimated Valuation High —
Multiple Range —
Professional Full parameters & maximum detail ▾
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Valuation

Base Valuation (Revenue Multiple) —
Quality-Adjusted Valuation —
Recommended Pre-Money —

Round Economics

Post-Money Valuation —
Implied Founder Dilution —

Exit Scenario

Exit Value at 5× Y5 ARR —

How to Use This Calculator

  1. Enter ARR, Revenue Growth Rate, and Sector for an instant valuation range.
  2. Use DCF Lite to project 5-year ARR and discount back to present value.
  3. Use Comparable Companies to derive multiples from 3 recent transactions.
  4. Switch to Professional for quality-adjusted valuation (NRR + GM adjustments) and exit scenarios.

Formula

Valuation = ARR × Revenue Multiple

Multiple driven by: growth rate, sector, NRR, gross margin, burn multiple

Example

ARR: $2M, Growth: 80%, SaaS → Multiple range: ~8–12× → Valuation: $16M–$24M.

Frequently Asked Questions

  • Early-stage startups are valued using revenue multiples (ARR × multiple), comparable transactions, or qualitative methods (Berkus, Scorecard). Growth-stage companies with $1M+ ARR are typically valued at 5–15× ARR for SaaS, with multiples varying by growth rate, NRR, and gross margin.
  • In 2024–2025, SaaS startups growing >100% trade at 10–20× ARR, 50–100% growth at 6–12×, and <50% growth at 3–7×. AI companies command higher multiples (15–30×). These are private market estimates — public market multiples are often lower.
  • Pre-money is the company's value before new investment. Post-money = pre-money + investment. Investors always negotiate pre-money valuation — it determines their ownership percentage.
  • The Berkus method (for pre-revenue startups) assigns up to $500K–$1M of value to each of 5 factors: basic value / idea, prototype, management team, strategic relationships, and product rollout / sales. Maximum valuation: $2.5–5M pre-revenue.
  • High NRR (>120%) is a strong valuation driver because it means existing customers compound revenue without additional acquisition cost. Each 10pp improvement in NRR can add 1–1.5× to the revenue multiple investors are willing to pay.

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Sources & References (5) ▾
  1. State of the Cloud — Bessemer Venture Partners — Bessemer Venture Partners
  2. Carta Valuations Report — Carta
  3. Above the Crowd — Bill Gurley — Bill Gurley / Benchmark
  4. Scorecard Valuation Method — Bill Payne — Bill Payne
  5. Meritech Capital Public Comps Benchmarking — Meritech Capital