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 MultipleEBITDA Valuation = EBITDA × EBITDA MultipleDilution = Funding ÷ (Post-money Valuation)
Frequently Asked Questions
- What revenue multiple is typical for a UK startup?
- It depends heavily on the sector. SaaS and high-growth tech startups typically trade at 5–15 times annual recurring revenue. Traditional businesses are usually valued at 1–3 times revenue. Do not pick a multiple from a headline. Calibrate against comparable transactions in your sector and what investors are actually paying right now.
- What is EBITDA multiple valuation?
- This method multiplies EBITDA — earnings before interest, tax, depreciation and amortisation — by a multiple for your sector. It suits mature businesses that already generate positive EBITDA. For pre-profit companies it does not work at all, which is why early-stage startups are usually valued on revenue multiples instead.
- What is equity dilution?
- Dilution is the share of the company you hand over in a funding round. The arithmetic is straightforward. If your pre-money valuation is £4m and you raise £1m, your post-money valuation is £5m and the investors own 20%. Model dilution alongside valuation — a higher valuation is only better if it does not come with terms that cost you more later.