What revenue multiple is typical for a UK startup?

SaaS and high-growth tech startups typically trade at 5–15× ARR. Traditional businesses may use 1–3× revenue. Use comparable transactions and investor expectations to calibrate your multiple.

What is EBITDA multiple valuation?

EBITDA multiple valuation multiplies earnings before interest, tax, depreciation, and amortisation by a sector-specific multiple. It is commonly used for more mature businesses generating positive EBITDA.

What is equity dilution?

Dilution is the percentage of equity you give away in a funding round. If your pre-money valuation is £4m and you raise £1m, post-money is £5m and investors receive 20% of the company.

Startup Valuation Calculator

Estimate your startup's pre-money valuation using revenue and EBITDA multiples. See the implied equity dilution if you raise funding at that valuation.

How it's calculated

Revenue Valuation = Annual Revenue × Revenue Multiple
EBITDA Valuation = EBITDA × EBITDA Multiple
Dilution = Funding ÷ (Post-money Valuation)

Frequently Asked Questions

What revenue multiple is typical for a UK startup?: SaaS and high-growth tech startups typically trade at 5–15× ARR. Traditional businesses may use 1–3× revenue. Use comparable transactions and investor expectations to calibrate your multiple.
What is EBITDA multiple valuation?: EBITDA multiple valuation multiplies earnings before interest, tax, depreciation, and amortisation by a sector-specific multiple. It is commonly used for more mature businesses generating positive EBITDA.
What is equity dilution?: Dilution is the percentage of equity you give away in a funding round. If your pre-money valuation is £4m and you raise £1m, post-money is £5m and investors receive 20% of the company.