Venture Capital Startup Valuation Tool

Venture Capital Startup Valuation Tool

Welcome to the Startup Valuation Tool

This tool helps entrepreneurs and investors estimate early-stage startup valuations using several common qualitative and quantitative methodologies. Startup valuation is more art than science, especially in the early stages. These methods provide frameworks to think about value drivers.

Navigate through the tabs to use different valuation methods:

  • Berkus Method: For pre-revenue companies, focusing on five key qualitative elements.
  • Scorecard Method: Compares your startup to an "average" company in your sector/region, adjusting for specific strengths and weaknesses.
  • Risk Factor Summation: Similar to the Scorecard, but adjusts a base valuation based on 12 specific risk categories.
  • VC Method: Estimates current valuation based on projected exit value and investor ROI expectations.
  • Summary: View and compare results from all methods you've completed and download a PDF report.

Please note that all monetary values are in US Dollars ($). You will need to provide certain inputs, such as average regional valuations for some methods, based on your own research.

Berkus Method

The Berkus Method is ideal for pre-revenue startups. It assigns a value up to $500,000 for each of five key risk-reducing elements. The maximum valuation with this method is typically around $2.5 million.

Scorecard Valuation Method

This method refines an average pre-money valuation for startups in your region/sector by comparing your startup across key criteria. Provide the average valuation and then rate your startup against the norm (100% = average).

FactorDefault Weight (%)Your Rating (vs Norm)Weighted Factor
Total Weight:100%Sum of Factors:1.00

Adjust weights if necessary, ensuring they sum to 100%. Rate your startup: <100% if weaker than average, 100% if average, >100% if stronger.

Risk Factor Summation Method

This method starts with an average pre-money valuation and adjusts it based on your assessment of 12 key risk factors. Each point of rating typically adjusts the valuation by $250,000.

Risk FactorYour RatingAdjustment ($)
Total Risk Adjustment:$0

Rate each factor: +2 (very positive/low risk), +1 (positive), 0 (neutral), -1 (negative), -2 (very negative/high risk).

Venture Capital (VC) Method

The VC Method estimates current valuation by projecting a future exit and discounting it back based on a target ROI. This method is often used to determine if an investment can meet a VC's return hurdles.

Valuation Summary

This table summarizes the pre-money valuations calculated from the methods you've used. Remember that these are estimates and should be used as part of a broader due diligence process.

Valuation MethodEstimated Pre-Money Valuation ($)

No valuation data yet. Please complete one or more methods.

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