Result
$0
Percentage
0%
Formula
Valuation = Revenue × Multiple
Understanding Startup Valuation
A basic startup valuation multiplies your annual revenue by an industry-standard multiple. Unlike the Venture Valuation method used for hyper-growth VC-backed companies, this approach is designed for early-stage founders who need a quick, bottom-up estimate before entering fundraising conversations.
Frequently Asked Questions
What revenue multiple should I use?
It depends on your industry and growth rate. SaaS startups with strong retention typically use 6x–10x. E-commerce and services businesses typically use 1x–3x. Research comparable companies in your sector for the most accurate benchmark.
How is this different from the Venture Valuation Calculator?
The Venture Valuation Calculator uses ARR with hyper-growth premiums and is designed for VC fundraising at Series A and beyond. This Basic calculator uses a simple Revenue × Multiple formula suited for seed-stage planning and angel rounds.
Can I use this for a profitable business?
Yes, but a profitable business may be better valued using earnings-based methods like EBITDA multiples or Seller's Discretionary Earnings (SDE), which factor in profitability rather than top-line revenue alone.