Value an early-stage company from revenue and a sector multiple, with a growth-adjusted range.
Revenue multiples are the standard shorthand for early-stage valuation, but they are only comparable at similar growth and margin. Scaling the base multiple by growth against a 40% baseline and margin against a 75% baseline puts a company on a like-for-like footing. Valuation is a negotiation, not a calculation — the value of this figure is the range and the sensitivity to growth, not the point estimate.
Startup Valuation
Valuation = revenue × multiple, adjusted for growth rate and gross margin
Valuation = revenue × multiple, adjusted for growth rate and gross margin Revenue multiples are the standard shorthand for early-stage valuation, but they are only comparable at similar growth and margin. Scaling the base multiple by growth against a 40% baseline and margin against a 75% baseline puts a company on a like-for-like footing.
Valuation is a negotiation, not a calculation — the value of this figure is the range and the sensitivity to growth, not the point estimate.
This calculator takes 4 inputs: Annual recurring revenue, Revenue multiple, Year-on-year growth, Gross margin. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.