The Startup Valuation Estimator produces a scenario-based enterprise value from annual revenue, a selected market multiple, recent growth, and a user-defined qualitative adjustment. It is designed for early planning conversations rather than a formal appraisal, because private-company pricing depends on many factors that cannot be captured in one formula. Founders can use the estimate to test fundraising expectations, compare term-sheet scenarios, or understand how a higher or lower multiple changes the implied valuation. The inputs should reflect the company’s own business model, stage, margins, retention, and current financing environment.
1. Enter annual revenue or ARR
Use the revenue basis that matches the multiple you selected.
2. Choose a revenue multiple
Enter a scenario multiple based on comparable companies or financing discussions.
3. Add annual growth
Use the most recent comparable year-over-year growth rate.
4. Apply a qualitative adjustment
Use a positive or negative adjustment for factors not represented by revenue and growth.
5. Review the estimate
Treat the output as a scenario, not a guaranteed transaction price.
Where:
Assumptions: The model weights current revenue and recent growth equally in the growth adjustment. Actual valuation methods may use different weights or metrics.
The output is an indicative enterprise value under the selected assumptions.
Debt, cash, liquidation preferences, and transaction structure can materially change the value attributable to common equity.
Given: ARR = $1.2 million, multiple = 6×, annual growth = 40%, adjustment = 0%.
Calculation: Base value = $1.2M × 6 = $7.2M. Growth factor = 0.5 + 0.5 × 1.40 = 1.20. Estimated value = $7.2M × 1.20 = $8.64M.
Result: The scenario implies an enterprise value of approximately $8.64 million.
Use the same revenue definition used by the comparable multiple, such as ARR for a subscription business or trailing revenue for another model.
It may come from recent private transactions, public comparables, or investor discussions. Use a range rather than relying on one point.
No. The result is an enterprise-value scenario; equity value may require adding cash and subtracting debt.
Not meaningfully. A milestone, venture-capital, scorecard, or discounted cash flow framework may be more suitable.
It lets you reflect factors such as concentration, margins, retention, intellectual property, or key-person risk that the simple inputs omit.