Startup Valuation Calculator

Startup valuation is part math, part negotiation, and partly a function of what investors are paying for comparable deals right now. That said, a revenue multiple gives you a defensible anchor for any investor conversation.

The standard formula for revenue-stage startups:

Valuation = ARR x Multiple

The multiple depends on growth rate and market conditions. A SaaS company growing 100% year over year in 2021 might have fetched 20x ARR. In 2024, the same growth rate in a tighter funding environment gets 8-12x. Multiples compress when interest rates rise because investors discount future cash flows more heavily.

Rough multiple ranges by growth rate (current market):

• Under 30% growth: 3-5x revenue
• 30-60% growth: 5-8x revenue
• 60-100% growth: 8-12x revenue
• Over 100% growth: 12-20x revenue

Industry matters too. Enterprise software and fintech have historically commanded premiums over consumer apps and e-commerce. Healthcare AI is getting high multiples right now. Hardware and manufacturing get compressed multiples because capital intensity is high.

Pre-revenue startups use different frameworks. The Berkus Method assigns value to five risk-reducing achievements: a sound idea, a working prototype, a quality management team, strategic relationships, and early sales. Each bucket contributes up to $500,000, capping pre-money at $2.5 million. That ceiling makes it most useful for very early angel deals.

None of this is a physics formula. Market conditions shift, and the investor on the other side of the table has a view too. These ranges are for calibration — knowing whether you are in the right neighborhood before the conversation starts.

Dilution check: if you raise at the midpoint valuation and sell 20% equity, your post-money is (pre-money + investment). Make sure that math works for your cap table before you anchor on a number.