Funding & cap table

Pre-revenue startup valuation calculator

Earnings-based methods fail when there are no earnings. The Berkus method values the risks a founder has already removed, scoring five factors that predict whether revenue will ever arrive.

Inputs

Result

Indicative pre-money valuation

USD 1,500,000

Low end of range (−20%)
USD 1,200,000
High end of range (+20%)
USD 1,800,000
Post-money at planned raise
USD 2,250,000
Investor ownership at that price
33.33%
Average factor score
6
  • Berkus values removed risk, not forecast profit. Expect investors to negotiate from a lower base.

How to use this calculator

  1. 1Score each of the five factors from 0 to 10 based on evidence you can show.
  2. 2Set the maximum value per factor appropriate to your market.
  3. 3Read the pre-money range and the implied post-money at your target raise.

The five value drivers

Sound idea (basic value), prototype (technology risk removed), quality management team (execution risk removed), strategic relationships (market risk reduced), and product rollout or early sales (production risk reduced).

Each factor carries a maximum contribution — classically 500,000 each, giving a 2.5m ceiling. Scale the cap to your market: a lower ceiling is realistic outside major venture hubs.

Using the result in a raise

The output is a pre-money valuation to negotiate around, not a fact. Investors will discount it for competition in the round and for how much capital the business still needs.

Pair the number with the dilution calculator so you can see what a given raise costs in ownership before you agree a price.

Call this tool from the API

Every calculator on this site is also an endpoint. Get a free key from the developer page and call it from your product, spreadsheet or AI agent.

curl -X POST https://utopiavalue.co/api/v1/tools/startup-valuation-calculator \
  -H "Authorization: Bearer $UTOPIA_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{"maxPerFactor":500000,"soundIdeaScore":7,"prototypeScore":6,"teamScore":8,"relationshipsScore":5,"rolloutScore":4,"raiseAmount":750000,"currency":"USD"}'

Frequently asked questions

Is the Berkus method credible with investors?

It is widely used at angel stage as a structured conversation starter. It is not an audit-grade valuation, and no investor will accept it as a final price.

What if we already have revenue?

Once revenue is established, use revenue multiples and, at profitability, the full valuation engine. Berkus is for the pre-revenue window.

Why does the range matter more than the point value?

Because scoring is subjective. A range of plus or minus 20% frames a negotiation honestly and avoids defending a false precision.