How the Calculator Works
Our calculator uses the VC Method and Scorecard Method to estimate a valuation range. Enter basic company metrics and get a pre-money and post-money range. Pre-money is the company's value before the new money arrives; post-money is pre-money plus the investment. The difference matters because ownership is priced on the post-money number, a $1M check into a $9M pre-money company buys 10%, while the same check into a $4M pre-money company buys 20%.
The VC Method works backwards from an expected exit: assume a future exit value, apply the return multiple the investor needs, and derive what the company must be worth today. The Scorecard Method compares the startup against a benchmark deal across factors like team, market size, product, traction, and competition, then adjusts a baseline valuation up or down. Both methods produce ranges, not prices, the real number is negotiated between founder conviction and investor demand.
How to Interpret the Results
Treat the output as a sanity band. If a founder's ask is far above the range, either the story is exceptional or the investor is being asked to underwrite too much risk; if it is far below, check whether something is broken or whether the round is simply off the radar. Cross-check the band against comparable rounds in the same sector and stage, and remember that valuation is not the only term, liquidation preference, option pool dilution, and pro-rata rights change the effective price.
Use Cases
- Angels and scouts: size a fair range before a first meeting so you can spot overpriced or underpriced asks quickly.
- Seed funds: pressure-test pipeline deals against sector benchmarks before writing an LOI.
- Founders: prepare for negotiation by knowing the range investors will anchor on before you set your ask.
- Portfolio managers: sanity-check markups and markdowns between rounds.
Valuation and Engineering Momentum
Valuation is set by the story, and the story is increasingly set by execution evidence. GitDealFlow users can add an engineering momentum adjustment: teams in the top quartile of commit velocity, contributor growth, and repository expansion, tracked across 350+ startups, typically command a premium over sector benchmarks, because accelerating engineering output is the strongest public evidence that the roadmap is real.
How to Use This Tool in a Deal Flow Workflow
This calculator exists to be embedded in a sourcing or diligence workflow, not used once and closed. The numbers it produces are the same primitives the GitDealFlow dataset is built on: 350+ startup GitHub organizations tracked across 15 sectors, refreshed weekly. When a target company is being evaluated, run its figures here, then compare against the sector baseline in the research dataset. The disciplined pattern is signal first (breakouts surface 21 to 47 days before the round), then arithmetic (does the unit economics justify a meeting), then process (memo, checklist, decision).
Related Tools
- GitHub momentum checker (any repo)
- All investor tools
- Due diligence checklists
- Research datasets (CC BY 4.0)
Frequently Asked Questions
What inputs does the calculator need?
Stage, sector, revenue (if any), growth rate, team background, and GitDealFlow momentum score (optional).
How accurate is the calculator?
It provides a range, not a precise number. Use with comparable transactions for a complete picture.
What is the difference between pre-money and post-money valuation?
Pre-money is the company's value before the round; post-money adds the investment. Investor ownership is calculated on the post-money figure.