Pre-Revenue Startup Valuation
Berkus & Scorecard Methods
Output Benchmarks
How to use this Pre-Revenue Startup Valuation
Input Data
Enter your current Finance metrics into the labeled fields above.
Analyze Ratios
Instantly view efficiency ratios calculated against elite standards.
Optimize
Compare your results with the Benchmarks on the right to find leverage points.
Strategic Context
THE STRATEGIC VIEW
THE CLOCK IS TICKING
If you are losing $50k a month and have $200k in the bank, you don't have a "startup." You have a 4-month-long explosion.
The Conflict: Founders treat "Burn Rate" as a badge of honor. It isn't. It's a wound.
The Truth: Cash is oxygen. When it runs out, the brain stops working. You stop being a CEO and start being a beggar.
The Fix: You must become "Default Alive." Profitability before the cash ends.
Operational Reality
VALUING THE INTANGIBLE
You cannot use DCF (Discounted Cash Flow) on a pre-revenue startup because there is no cash flow.
Instead, VCs use "Proxy Metrics": Team Experience, Market Size, and Product Readiness.
This calculator focuses on "Runway" because in pre-revenue, your valuation is basically: (Monthly Burn x 18 Months) / Dilution Target.
THE 20% DILUTION RULE
Regardless of your "Theoretical Valuation", the market reality is simple:
Seed investors want 15-25% of your company.
If you need $1M to survive 18 months, your post-money valuation is automatically ~$4M-$5M. The math works backward from the cash need, not forward from the idea's worth.
Tactical FAQ
TACTICAL Q&A
Q: Should I use the Berkus Method?
Q: How much equity for an Advisor?
Q: What's the difference between pre-money and post-money valuation?
Output Benchmarks
Master The System
This calculator is just one tactical step. The full strategy is documented in the core protocol.
Source Lesson
Finance & Capital: Finance Protocol