Free startup valuation calculator using Berkus, Scorecard, and Risk Factor methods. Compare pre-revenue valuation approaches and get a blended estimate.
Valuing a startup with little or no revenue is more art than science. Unlike mature companies, there are no earnings or cash flows to discount. Instead, early-stage investors use qualitative frameworks that score the team, market, product, and traction.
This calculator implements three widely used pre-revenue valuation methods: the Berkus Method (assigns value to five risk-reducing milestones), the Scorecard Method (compares to average funded startups), and the Risk Factor Summation method (adjusts a base valuation across 12 risk categories).
The blended result averages all three to give a balanced pre-money valuation range. Startup valuation is inherently uncertain because most early-stage companies lack the revenue history or profitability needed for traditional methods. Each method operates on different assumptions, so presenting a range rather than a single figure gives both founders and investors a realistic basis for negotiation. Triangulating from multiple methods also highlights where your startup is strongest and where investors see the most risk.
If you're raising a seed or pre-seed round, you need a defensible valuation. Going in blind leads to over-dilution or unrealistic expectations that stall negotiations. These methods give you a data-informed starting point that angels and seed VCs understand and respect. Multiple perspectives also highlight where your business is strongest and which risk factors investors are likely to question.
Berkus Method: Sum of 5 milestone values (max $500K each, total max $2.5M) Scorecard Method: Base Valuation × Weighted Score (team 30%, market 25%, product 15%, traction 10%, competition 10%, other 10%) Risk Factor Summation: Base Valuation + (Σ risk adjustments × $250K each) Blended = Average of all three methods
Result: Blended Valuation: ~$2.1M
Berkus: $1.75M (strong team + prototype + strategic partnerships). Scorecard: $2.3M (above-average team and market). Risk Factor: $2.25M (net +1 across 12 factors). Blended: ($1.75M + $2.3M + $2.25M) / 3 = ~$2.1M.
Valuation methods provide structure, but early-stage investing is fundamentally about conviction in the team and market. A great team in a massive market will attract premium valuations regardless of what any formula says.
Overvaluing: Setting a $10M pre-money at seed may impress friends but makes raising a Series A very difficult (you'll need to justify 3-5x growth). Undervaluing: Giving away 40% at seed leaves too little equity for future rounds and founders. Target 15-25% dilution per round.
Valuations vary significantly by geography. San Francisco seed rounds average $5-8M pre-money, while startups in smaller markets or internationally may see $1-3M for comparable companies. Always benchmark against your local ecosystem.
Use all three and take the average. Each has blind spots: Berkus ignores market comparables, Scorecard depends heavily on the base figure, Risk Factor is subjective. The blend smooths out individual biases and gives a more defensible number.
Created by angel investor Dave Berkus, it assigns up to $500K for each of five milestones: Sound Idea, Working Prototype, Quality Team, Strategic Relationships, and Product Launch/Sales. Maximum pre-money: $2.5M. It's quick, simple, and widely recognized in angel investing.
It should reflect the average pre-money valuation of recently funded startups in your sector and region. In the US, seed-stage averages range from $1M-3M for pre-revenue and $3M-8M for early revenue. Check AngelList, Crunchbase, or PitchBook for comparable deals.
In practice, valuation is a negotiation influenced by: supply/demand (competitive rounds drive higher valuations), traction metrics, market size, team pedigree, comparable deals, and how much the investor wants in. These frameworks provide a structured starting point for that negotiation.
These methods are designed for pre-seed and seed stages. By Series A, most startups have revenue, and investors use revenue multiples (SaaS: 10-20x ARR), DCF models, or comparable transaction analysis. Use our Revenue Multiple calculator for that stage.
No. Think of it as the center of a reasonable range (±20-30%). Startup valuation is inherently imprecise at early stages. The goal is to arrive at a number that's fair enough for both sides to proceed, not to calculate an exact intrinsic value.