Businesses have a hard time when it comes to calculating their valuation, the situation is much worse when it comes to early-stage companies, startups and scale-ups. Startup valuation doesn’t work the same way valuation of an already established business does, because of the high-risk factor of a small, starting-out (pre-revenue) business.
A plethora of methods exist, allowing for calculating a business’s valuation through the use of both quantitative & qualitative aspects of that same business. From the “Venture Capital Valuation Method”, which makes use of 2 simple indicators: post & pre – money valuation, to the “Risk Summation Method”, which quantifies and compares possible risks that a business may have, the most commonly used valuation models are described here.
In order to automatize the process, and make the lives of investors and founders much easier, many VC firms, accelerators and consulting agencies create Valuation Calculators – online tools that allow anyone to calculate the possible value of their business. I’ve decided to search the internet to compile a list of the most user-friendly and handy startup valuation calculators, so you could try them out and choose the one that best suits your needs!
Important: Valuation calculators are meant to be an estimate of a business’s worth, they are, in no way, a sure-fire method of valuing a business. For better results, I suggest doing as many iterations as you can, with different types of answers to better understand the estimated worth of your company.
- Pre-revenue Valuation Calculator for Startups by Enterprise Monkey:
This pre-revenue startup valuation calculator is inspired by the scorecard valuation method and it comes in a form of a questionnaire with 6 parts (several questions each), at the end of which you receive your startup’s valuation. What’s great about Enterprise Monkey’s calculator, is that they also offer in-depth explanation on how the scorecard model of valuation functions, giving you a full-on guide on how to do it yourself.
- Startup Valuation Calculator by EquityNet:
This calculator comes recommended by Bloomberg, Business Daily News and even Forbes, or at least that’s what Equity.net states on their page. It consists of a simple questionnaire with 8 unique questions, that are heavily based on real market data, that their team gathered from over 3000 businesses over the world. By using their benchmarking database, you are offered your valuation compared to peers in your industry.
- Startup Valuation Estimator by Cayenne Consulting:
Startup Valuation Calculator (or estimator) by Cayenne Consulting sets forth a very extensive questionnaire, compared to the others on this list, made up of 25 questions. Each of these has a “Why does this matter?” button, by clicking on which you can learn why the question you are answering is important for the valuation. It’s a great tool for learning how exactly “Startup Valuation” functions and what kind of characteristics of your business it looks at.
- Valuation Calculator by InnMind.com:
InnMind’s startup valuation calculator is a great tool to calculate the estimated value of your startup in a few minutes. You don’t need to pay for consultation, or wait for the results. Answer a short 10 question survey, and receive the results in your mailbox right away. Being a product of Innmind, #1 in Europe digital ecosystem for tech startups, Venture Capital & Corporate Funds, this calculator has been developed in consultation with venture capital analysts and serial investors to help startup founders understand what their business is worth today.
Startup Valuation Platform by Equidam:
This calculator tool is very different from every other on the list. It’s the most detailed and complete one, offering not only a questionnaire for estimating a startup’s worth, but also dashboards, financials, reports, creation of downloadable PDF reports. Finally, it claims to offer 5 different types of valuation methods. What’s the catch? Alas, it’s not free.
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That is it, for the Top 5 Startup Valuation Calculators List, I hope you found the tool that best suits the needs of your company! Bear in mind, that this is not an exhaustive list, there are a plethora of valuation calculators online that you could use for your company’s purposes!
And remember that Valuation Calculators are an estimation tool and are, in no way, a precise method of measuring your company’s worth. Many are not that accurate and at the end of the day it’s up to you to ensure the best possible valuation for your business!
Written by Egor Kiselev Sukhanov, SMM at InnMind.com
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