In this article we will cover calculators which can give you pre money valuation of your business or startup. Having a calculator which can give you pre money valuation for your business can help you a lot as a startup owner. If you don’t want to get into the complicated maths of calculating the valuation, then you can just simply go with any of the calculators mentioned in this article.
Let’s start by asking what is pre money valuation in a startup? Pre money valuation is rather simple. This is the figure which tells you how much your company is worth. This is the value of your company’s equity before getting any investments. For example, if you say your startup is worth $15 million pre money, this means that this is your company’s valuation based on revenue, margins, traction, etc.
So if you are seeking investment then you need to determine the pre money valuation of your company on the basis of which you can negotiate with the investor. Let’s look at some websites which let you do this.
Enterprise Monkey calculates your company’s pre money valuation easily. When you reach the website you will have to answer a couple of questions. This questions tool is based on industry standards and made in guidance from investors, venture capitalists, etc. Once you are done answering the questions, you will be asked to provide an email address so that your result can be emailed to you. You will also be shown the results on the website once you submit your email address.
This is how the results will be displayed on you screen. You will be shown multiple parameters regarding your business along with the startup valuation. You can now use this valuation to negotiate investment from people or company’s.
Check out Enterprise Monkey here.
Cayenne Consulting is another website where you will find a pre money calculator. When you click on the link given below, you will be taken straight to this calculators page which will look like the screenshot below.
You will find about 25 questions on this page, all related to evaluating your business or product. Go through these questions and answer as per your choice. Each question has a yellow button on its right side which says “why does this matter?”. When you hover over this button it will show in a pop up window, the reason you are being asked this question. At the end click the update valuation button. This will give you the result as seen in the screenshot below.
Each question has four options to choose from. The number one option has the lowest value while the number 4 option has the highest value. So your business will be evaluated based on the choices you make.
Check out Cayenne Consulting pre money calculator here.
Growth Fountain also gives you a pre money calculator for your startup. When you reach the page of this calculator it will look like the screenshot below. At the bottom of the page you will find a get started button to move ahead.
Go thorough the questions being asked on the page. Select or enter your answers carefully. Once done click on the finish button at the bottom right. Once you click the finish button you will be shown the pre money valuation for your startup as shown below.
Now you can use this pre money valuation to raise money for your startup. The website also gives you the option to calculate the next step which is to calculate how much money should you raise or ask investors for.
Check out Growth Fountain pre money calculator here.
Lighter Capital offers a basic pre money valuation calculator which you can see in the screenshot below. When you open the link provided below, you will reach this page.
You can answer these basic questions about your business and then click on the ‘get my valuation’ button at the bottom. This will generate your result which can be seen in the screenshot below.
This result is based on the questions that you answered. Your data is also shown on the left side of your screen. The only down side to this calculator is that is it available for only a few countries.
Check out Lighter Capital pre money valuation calculator here.
Startup Valuation Calculator by StartupGeek
StartupGeek is the website which offers this valuation calculator. It is a pretty simple calculator and does not ask you many questions. The only thing you should be clear about is how much money are you planning to raise from your investors. The website calculator page looks like the screenshot below.
First you have to select the amount you want to raise or get from your investors. Then select if your company is pre-seed, seed, series A, or series B. This option basically tells the calculator whether it is a startup or a established company that you are looking for an investment for.
Once you select that, you will be shown you pre money valuation, as can be seen in the screenshot above. You will be shown a low valuation as well as a high valuation for your company. Along with this you are also shown the amount of equity that you would need to give away for getting that much investment.
Check out pre money valuation calculator by StartupGeek here.
All the above mentioned pre money startup valuation calculator work fine. My favorites among them are the one from Enterprise Monkey and Cayenne Consulting. Both of them have a detailed questionnaire which can help you with a good valuation for your startup. I would suggest you check them all out and see which one best fits your needs.