Stage 3 · Pitch and close

Startup Valuation Calculator (VC Method)

Work back from a future exit to today's pre-money, then cross-check with a revenue multiple.

Free, no sign-up. Your numbers stay in your browser.

Please note. Educational only. This is not investment, financial or legal advice. Real rounds depend on the market, your traction and the exact terms you sign. Results are estimates based on what you enter. Full disclaimer · How we build the numbers

What this tool does

The VC method starts from what the company could sell for, divides by the return an investor needs, and adjusts for the dilution of later rounds. What's left is the post-money they can pay today.

How to use it

Estimate revenue in the exit year and a realistic exit multiple.
Set the return the investor needs and how much later rounds will dilute them.
Enter your raise and compare with a simple revenue-multiple check.

The maths, in plain view

Exit value = exit-year revenue × exit multiple
Post-money = exit value ÷ target return × (1 − later dilution)
Pre-money = post-money − raise

A worked example

A $25M-revenue exit at 4x is $100M. At a 20x target return and 40% later dilution, the post-money today is $3M, so a $1.5M raise implies a $1.5M pre-money and 50% sold - a sign the round is too big for this story.

Tips

If the methods disagree a lot, explain why in your deck: different stage, growth or market.
Never lead with a valuation you cannot back with at least two methods.

Questions people ask

How are pre-revenue startups valued?

Usually with qualitative methods such as the Scorecard or Berkus method, compared against recent rounds for similar companies in the same region and stage.

What is the VC method of valuation?

It works backwards from an expected exit value: divide by the investor's target return and adjust for future dilution to get the post-money valuation they can accept today.

What multiple should I use?

Use recent, comparable data for your sector and stage, and say where it came from. Multiples change with markets, so treat any rule of thumb as a starting point.

Keep going

Stage 2 · Plan the raise