Answer a short 10 question survey, and receive the results in your mailbox right away. Startup Valuation: How to calculate what your startup is really worth? The Berkus Method was developed as a way to calculate the startup valuation without unreliable assumptions. Learn what "pre-money valuation" means and how to calculate it, by Karl Sjogren of The Fairshare Model. To help founders InnMind team, in consultation with venture capital analysts and serial investors, designed the Startup Valuation Calculator, a simple and efficient tool to estimate the value of your startup business just in a few minutes. Post-Money Valuation is a company’s value after it receives money from the current round of funding. ], text-transform: An Unlikely Source of Jank, Goodbye, Sprockets! Therefore it takes into account the "value" of the cash contribution made by investors. InnMind’s startup valuation calculator is a great tool to calculate the estimated value of your startup in a few minutes. Watchers fired in the last 5 iterations, Git Bisect Debugging with Feature Branches, 10 Things You Didn’t Know About Quantic’s Online MBA Program, Active Learning: Giving Students A Leading Role in Digital Learning. It is the value of the company after the investment has been made. When negotiating a potential investment into your startup it is important to know the difference between the pre-money and post-money valuation. It might not seem like a big difference with these example numbers, but try working out the difference when the investment being made is millions of dollars. High Tech Startup Valuation Estimator. With this type of valuation, an investor estimates how much the company is worth right now. Hence, this tool firstly utilizes a startup valuation method which they modestly called the VC method. As with the other value calculations, there are several to calculate post-money. Emma McGowan, Startups.co columnist, interviewed 10 startup founders who shared their tried and true methods for figuring out what your startup is worth. If your startup has not achieved revenues yet, the venture capital method is well suited. Startup valuation is intrinsically different from valuing established companies. Unlike the Berkus Method, the baseline is adjusted by a series of ratio values. Open an account. So, calculating the startup’s value is not a one-size-fits-all process. Each one focuses on a different financial perspective. For example: Let’s say a startup is worth $10 million. This gives investors a view into how much other investors are willing to support the startup. The Discounted Cash Flow method measures the future revenue potential of a startup. Startup Valuation Calculator: How do I start? It measures startup valuation by comparing the company with other companies. Here’s why it’s so valuable. If they are referring to the $2 million as the pre-money valuation then they will control 9.09% of the company following the investment. Cash. You can simply take the pre-money valuation and add the value of the investment to get the post-money valuation. It relies on fewer assumptions than the discounted cash flow method. It’s best to use this method if a significant part of the company’s value relies on tangible assets. Home » Resources » Startup Valuation Calculator. InnMind Startup Valuation Calculator . This makes the prospect of calculating value confusing. “How valuable is this startup compared to similar companies?”. Sign in. Rewards. The best way to overcome investor fear is knowledge. Once the $100,000 investment has been made then it is "applied" to the valuation of the company. Startup Valuation Calculator. Valuation is as much an art, as it is science. 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