What's Your Startup Worth?
Calculate your valuation using 4 different methods. Then reality-check against stage benchmarks.
Your Metrics
ARR: $300,000
MoM growth. 15-20% is excellent for seed stage.
Seed Benchmarks
Estimated Pre-Money Valuation
Your metrics suggest a higher valuation than typical. Be prepared to defend your numbers with strong data.
What This Means
- →Revenue Multiple: Based on typical growth, investors may pay 30x ARR.
- →At $90.3M valuation: A $2M raise would mean ~15-20% dilution.
- →Reality check: Valuations are ultimately what investors will pay. Strong metrics give you leverage in negotiations.
How Each Method Works
Revenue Multiple
Best for: Companies with revenue
Multiply ARR by a stage-appropriate multiple. Growth rate significantly impacts the multiple—fast-growing companies command 30-50x ARR at seed, while slower ones get 10-20x.
Berkus Method
Best for: Pre-revenue startups
Assigns up to $500K for each of 5 factors: sound idea, prototype, quality team, strategic relationships, and product rollout. Caps at $2.5M pre-money.
Scorecard Method
Best for: Early stage with some traction
Compares your startup to typical deals at your stage. Adjusts up/down based on team, market size, product, traction, and competitive environment.
VC Method
Best for: Understanding investor math
Works backward from expected exit. If VCs need 10x return with 30% ownership, they work back from your projected exit value to determine what they'll pay today.
What VCs Actually Care About
Growth Rate (Most Important)
Nothing drives valuation like growth. A startup growing 20%+ month-over-month commands premium multiples. Investors pay for trajectory, not just current numbers.
Market Size
VCs need billion-dollar outcomes. A $100M market limits your exit potential no matter how well you execute. They look for paths to $100M+ ARR.
Team Quality
Repeat founders, domain experts, and strong technical teams command higher valuations. At pre-seed, team is often the primary factor.
Typical Valuations by Stage
| Stage | Valuation Range | Typical Raise | Expected Traction |
|---|---|---|---|
| Pre-Seed | $1-5M | $250K-$1M | Idea, prototype, early users |
| Seed | $5-15M | $1-4M | $10-50K MRR, growing 15%+ MoM |
| Series A | $15-50M | $5-15M | $100K+ MRR, PMF signals, clear GTM |
| Series B | $40-150M | $15-50M | $1M+ ARR, unit economics work, scaling |
Note: These are 2024 benchmarks for US-based SaaS startups. Ranges vary by market, geography, and market conditions.
Related Resources
Startup Valuation FAQ
What's the difference between pre-money and post-money valuation?
Pre-money is your valuation before investment. Post-money = pre-money + investment amount. If you raise $2M at a $8M pre-money valuation, your post-money is $10M, and investors own 20%.
Should I optimize for valuation or other terms?
Don't over-optimize for valuation. A sky-high valuation creates a "down round" risk if you can't grow into it. Better terms (less aggressive liquidation preferences, protective provisions) often matter more than an extra $1M in valuation.
How do I negotiate valuation?
The best leverage is competing term sheets. Beyond that: strong metrics, clear growth trajectory, large market, and excellent team. Come prepared with comparables—similar companies that raised at similar valuations.
What if I have no revenue?
Pre-revenue valuations are driven by team, market, and progress. Use the Berkus method as a starting point. Typical pre-seed valuations for strong teams in large markets: $2-5M. Focus on demonstrating execution ability and market understanding.