Pre-Revenue Startup Valuation Calculator
Venture Proxy Math
Output Benchmarks
How to use this Pre-Revenue Startup Valuation Calculator
Input Data
Enter your current Venture Capital 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
Pre-revenue companies have no cash flow to discount. Therefore, valuation is a signal of "Scarcity" and "Trust". VCs use proxy methods like the Berkus Method or Scorecard Method to justify a price.
Operational Reality
THE VALUATION PARADOX
Founders obsess over "Valuation Math," but VCs trade on "Ownership Math." In a Seed round, an investor needs 15-20% ownership to make their portfolio model work.
- If you need $2M, the valuation *must* be around $8M-$10M to hit that ownership target.
- The spreadsheet methods (Berkus, Scorecard) are just tools to back-solve into this market reality.
THE RISK OF HIGH VALUATION
Raising at a $20M cap with no revenue feels like a win, but it creates a "Valuation Trap." To raise Series A, you typically need to triple your valuation.
- Trap: Tripling $20M requires $2M-$3M in ARR within 18 months.
- Safe: Tripling $8M requires only $1M in ARR.
Lower valuations often increase your probability of surviving to the next round.
Tactical FAQ
TACTICAL Q&A
Q: What is the "Berkus Method"?
Q: Pre-Money vs Post-Money SAFE?
Q: How much equity should I give to an advisor?
Q: Does "Traction" override these methods?
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: Venture Capital Protocol