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High Tech Startup Valuation Estimator

Wondering what your Pre-Money Value will be if a VC ever puts a term sheet on the table? Valuing a startup is intrinsically different from valuing established companies. Because of the high level of risk and often little or no revenues, traditional quantitative valuation methods like P/E comparables or discounting free cash flows are of little use. Startup valuations are largely determined based on qualitative attributes.

We've been told by several investors that our valuation model produces reasonably good valuations. Of course, every situation is different, so your mileage may vary. The model below is intended more for educational purposes than for performing serious valuations. Please read this Important Disclaimer. If you need help valuing your company, we offer valuation consulting services.

Answer the following 25 questions, and we'll calculate an approximate range for you. For each of the following questions, choose the answer that most closely describes your situation. The first choice produces the lowest values; the fourth choice produces the highest value.

  1. My product or service is: Why does this matter?
  1. My industry is: Why does this matter?
  1. My product or service will: Why does this matter?
  1. Global annual revenues in the sub-sector of the market I am competing in is: Why does this matter?
  1. My market is: Why does this matter?
  1. My primary competitors (others who are competing for the same consumer dollar by satisfying the same consumer need) are: Why does this matter?
  1. My customers (or potential customers) have: Why does this matter?
  1. My sales and marketing plan is: Why does this matter?
  1. My revenues over the past 12 months were: Why does this matter?
  1. My revenues over the next 12 months are expected to be: Why does this matter?
  1. My revenues 5 years from now are expected to be: Why does this matter?
  1. My strategic partnerships consist of: Why does this matter?
  1. My intellectual property includes: Why does this matter?
  1. The highest level of entrepreneurial experience achieved by anybody on my team consists of: Why does this matter?
  1. I developed my expertise in this market by excelling at senior positions in the industry for: Why does this matter?
  1. The number of Ph.D.s that have been working for me full time for at least three months is: Why does this matter?
  1. The number of sales/marketing/ business development experts who understand and have extensive contacts within my industry who have been working for me full time for at least three months is: Why does this matter?
  1. My business plan: Why does this matter?
  1. I have invested ______ hours of my own time into this venture. Why does this matter?
  1. I have invested ______ of my own funds (from savings, credit cards, second mortgage, selling blood, etc.) into this venture. Why does this matter?
  1. My corporate attorney is: Why does this matter?
  1. My intellectual property attorney is: Why does this matter?
  1. If a Fortune 500 company decided to put their resources behind competing with my startup tomorrow, my startup would be: Why does this matter?
  1. Once my product is on the market, my marginal gross margins - a new dollar of revenue minus the cost of producing that revenue - will: Why does this matter?
  1. Other startups in my industry raising venture capital at a similar stage of development (product, management team, revenues, partnerships, prior funding, etc.) are getting pre-money valuations of: Why does this matter?

Valuation Results

Click the "Update Valuation" button below to calculate

Need Valuation Assistance?

As noted above, this model is intended more for educational purposes than for performing serious valuations. If you need help valuing your company, we offer valuation consulting services.