Pre-Revenue Startup Valuation Calculator

Value early-stage startups using multiple methodologies: Replacement Cost, Revenue Synergy, and Comparables

Valuation Summary

Replacement Cost New

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Revenue Synergy Value

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Avg Comparable Exit

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Avg Comparable Valuation

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(Reference only)

Valuation Approach: Use RCN and Revenue Synergy as primary valuation methods. Comparable Exits provide market validation. Comparable Startups are for reference only and should not be directly factored into your valuation.

1. Replacement Cost New (RCN)

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

Full-Time Employees (FTE)

Loaded Cost per FTE per Year

Years of Development

Time/Risk Premium Multiplier (1.3–2.0)

2. Revenue Synergy with Acquirer

Calculate valuation based on revenue synergies the startup could create for a potential acquirer

Acquirer Customer Base

Eligible Customer % (product fit)

Annual Adoption Rate (of eligible)

Adoption Period (Years)

Execution Haircut (McKinsey: ~20%)

ARR per Site/Customer

Gross Margin %

Discount Rate %

Seller Share of Synergies % (industry norm ~31%)

3. Comparable Exits

Reference similar company acquisitions to benchmark valuation

Company Name

Exit Value

Year

4. Valuations of Comparable Startups

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

Company Name

Valuation

Stage

Methodology Notes

Replacement Cost New (RCN)

Calculates what it would cost to rebuild the startup from scratch. Formula: Payroll = FTE × Loaded Cost/FTE/yr × Years, then apply a time/risk premium (typically 1.3–2.0x) to account for opportunity cost and execution risk.

Revenue Synergy

Models the value created through revenue synergies with a potential acquirer. Based on McKinsey research showing revenue synergies often underperform by ~20% and take 3–5 years to capture. The seller typically receives ~31% of capitalized synergies in the purchase price.

Comparable Exits

Reference similar company acquisitions to validate your valuation range. Look for companies with similar technology, market, and stage.

Comparable Startups

Market valuations of similar startups provide context but should not be directly used in your valuation. These are often inflated by market conditions and investor sentiment.