Pre-Revenue Valuation

Value early-stage startups using multiple methodologies

Replacement Cost

—

Revenue Synergy

—

Avg Comparable Exit

—

Avg Startup Valuation

—

(Reference only)

Approach: Use RCN and Revenue Synergy as primary methods. Comparable Exits provide market validation. Comparable Startups are for reference only.

1. Replacement Cost New (RCN)

Cost to rebuild the startup from scratch, including time and risk premium

Full-Time Employees

Loaded Cost per FTE/Year

Years of Development

Time/Risk Premium(1.3–2.0x)

Valuation based on revenue synergies for a potential acquirer

Acquirer Customer Base

Eligible Customer %(product fit)

Annual Adoption Rate(of eligible)

Adoption Period

years

Execution Haircut(~20%)

ARR per Customer

Gross Margin

Discount Rate

Seller Share of Synergies(~31%)

Reference similar company acquisitions to benchmark valuation

Company

Exit Value

Year

Reference valuations of similar startups (for context only, not factored into valuation)

Company

Valuation

Stage

What it would cost to rebuild from scratch. Apply a 1.3–2.0x premium for time/risk.

Value from synergies with acquirer. Seller typically receives ~31% of capitalized synergies.

Similar company acquisitions validate your range. Look for matching tech, market, and stage.

Market valuations provide context but shouldn't drive your valuation directly.