(Note: the best way to use this valuation estimator is to answer the questions, see the valuation, and then change an answer or two to see the effect.)
Wondering what your pre-money valuation will be if a VC ever puts a term sheet on the table? Valuing a startup is intrinsically different from valuing established companies. Because of the high level of risk and often little or no revenues, traditional quantitative valuation methods like P/E comparables or discounting free cash flows are of little use. Startup valuations are largely determined based on qualitative attributes.
We’ve been told by several investors that our valuation model produces reasonably good valuations. Of course, every situation is different, so your mileage may vary.