About the Pre-Revenue Startup Valuation Calculator
This pre-revenue startup valuation calculator applies the three methods angel investors most often use when there is no revenue to multiply. The Berkus method assigns value to five risk-reducing milestones — a sound idea, a prototype, a quality team, strategic relationships and product rollout or early sales. The scorecard method starts from the average pre-money valuation of comparable pre-revenue deals and adjusts it by how your company compares on seven weighted factors. Risk factor summation starts from the same average and adds or subtracts a fixed amount for each of twelve risks.
It is built for founders preparing for an angel or pre-seed round who want a defensible number, and for angels who want a structured way to compare deals. Running all three side by side and averaging them gives a range rather than false precision, and shows which assumptions drive the result.
All three methods are heuristics, not market prices. Their output depends heavily on the comparable valuation you enter, which should reflect recent pre-revenue deals in your region and sector. The final price in a round is set by negotiation, demand from investors and the instrument used (for example a SAFE cap).
With the default inputs, the estimated pre-money valuation is $1,870,000.00. Change any value above to recalculate instantly.
How to use the pre-revenue startup valuation calculator
- 1Choose a single method or all three to compare.
- 2For Berkus, rate how much of each milestone you have achieved.
- 3Enter the average pre-money valuation of similar pre-revenue startups in your region.
- 4For the scorecard, compare your company with that average on each weighted factor.
- 5For risk factor summation, rate each of the twelve risks from −2 to +2, then review the range.
Formula and method
The Berkus method, created by angel investor Dave Berkus, values a pre-revenue company by crediting up to a fixed amount (originally $500,000) for each of five elements that reduce a specific risk. The scorecard method, popularised by Bill Payne, takes the average pre-money valuation of comparable pre-revenue deals and multiplies it by a weighted comparison: management team 30%, size of opportunity 25%, product and technology 15%, competitive environment 10%, marketing and partnerships 10%, need for additional investment 5% and other factors 5%.
Risk factor summation also starts from the comparable average, then rates twelve risks from −2 (very high risk) to +2 (very low risk). Each step adds or subtracts a fixed amount — conventionally $250,000 — so a +2 adds $500,000 and a −2 subtracts $500,000. The average of the three methods is shown when “All three” is selected, along with the lowest and highest results.
- Max per element
- Berkus cap for each of the five milestones
- Comparison %
- How the company compares with the average deal on a factor (100% = average)
- Step
- Value of one rating step in risk factor summation
Worked examples
Default early-stage startup, all three methods
Berkus credits 80% + 60% + 70% + 30% + 20% of $500k = $1.3M. The scorecard multiplier is 0.375 + 0.375 + 0.15 + 0.075 + 0.08 + 0.05 + 0.05 = 1.155, giving $2M × 1.155 = $2.31M. The twelve risk ratings net to zero, so risk factor summation stays at $2M. The average is $1.87M.
Berkus only, strong team and working prototype
Full credit for the idea, prototype and team ($1.5M) plus 40% of $500k for relationships ($200k) gives $1.7M. With no product rollout yet, the last element adds nothing.
Risk factor summation with several high risks
Ratings of −1, −2, −1 and −1 for management, stage, sales and competition and −1 for funding sum to −6. At $250k per step that subtracts $1.5M from the $3M comparable valuation, leaving $1.5M.
Frequently asked questions
How do you value a startup with no revenue?+
Without revenue or profit to apply a multiple to, angels use heuristic methods such as the Berkus method, the scorecard method and risk factor summation. They anchor on comparable pre-revenue deals and adjust for team, product, market and risk, and the final number is set by negotiation.
What is the Berkus method?+
Created by angel investor Dave Berkus, it assigns up to a fixed amount — originally $500,000 — for each of five elements: a sound idea, a prototype, a quality management team, strategic relationships and product rollout or sales. The total is the pre-money valuation, capped at the sum of the maximums.
What is the scorecard valuation method?+
The scorecard (or Bill Payne) method multiplies the average pre-money valuation of comparable pre-revenue startups by a weighted comparison of your company on factors such as management team (30%), size of opportunity (25%) and product (15%).
What is risk factor summation?+
It starts with the average pre-money of comparable startups and rates twelve risks — management, stage, legislation, manufacturing, sales, funding, competition, technology, litigation, international, reputation and exit potential — from −2 to +2, adjusting the value by about $250,000 per step.
Which pre-revenue valuation method is best?+
None is objectively best; each captures different information. Using two or three together and looking at the range is more robust, and the comparable valuation you start from matters more than which method you choose.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.