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Startup Valuation Modeler Calculator

Calculate the absolute implied fiat valuation of an unlisted private corporation based on its forward revenue burn multiples.

Calculator Parameters
Financial Engine
$
Total yearly SaaS cash
%
Growth velocity dictates the multiple
x
SaaS usually trades at 5x to 15x ARR
Capital Raise Physics
$
Amount of cash requested from VC
Summary
Post-Money Valuation
$10,500,000
$8,000,000
Pre-Money Valuation
23.8%
Founder Dilution (Sold)
Allocation Split
Pre-Money vs Post-Money Illusion

Before the VC wires exactly $2,500,000 to the corporate bank account, the company is objectively entirely worth $8,000,000. The absolute second the wire physically lands, the corporation literally mathematically instantly becomes worth $10,500,000.

Education

The Mechanics of the Multiple

Why a company that physically lost $5 Million in profit this year is somehow 'worth' $100 Million.

Profit vs Revenue Multiples

A standard local restaurant is valued purely on EBIDTA Multiples (Profit). If a diner makes $100,000 in pure cash profit after all expenses, and the standard multiplier is 3x, the diner is worth exactly $300,000. It is a slow, steady cash machine.

A hyper-growth Silicon Valley SaaS startup is legally valued strictly on Top-Line Revenue Multiples. Because a SaaS product has 90% gross margins, VCs don't care that the founders are currently burning $2 Million to capture the entire market share. They purely care that the revenue is geometrically doubling every 12 months. Therefore, they will violently assign a 15x Revenue Multiple.

If you have exactly $1 Million in SaaS Revenue, investors instantly declare your private company is magically worth $15 Million, despite realistically currently losing fiat money every month.

The Dilution Trap

If you need $2,500,000 to survive, and your Pre-Money valuation is $8,000,000. You do NOT sell 31% of your company (2.5M / 8.0M). That is mathematically false.

You strictly sell shares entirely based on the Post-Money Valuation (Pre-Money + VC Cash = $10,500,000). You physically sell $2.5M / $10.5M = 23.8%. This protects the founder from geometrically destroying 8% more of their absolute equity during negotiations.