I recently posted how do you calculate violation, many people were saying most startup doesn't earn profit , so there are two more ways you can go about Revenue Multiples Method 1. Focus on Revenue: Use your company’s current or projected revenue instead of profit. Example: You’re making $200K in annual revenue. 2. Apply an Industry Multiple: Check what similar businesses in your industry are valued at (e.g., 3x revenue). Example: $200K × 3 = $600K valuation. Comparable Company Valuation 1. Find companies similar to yours in size, industry, or growth stage. 2. Look at how much they raised or sold for, and use that as a benchmark. Example: If a similar startup sold for $1M on $300K revenue, your $200K revenue suggests a valuation around $666K. Market Potential + Growth Method For early-stage startups: 1. Estimate your total addressable market (TAM). 2. Factor in your growth potential. Capturing 1% of a $50M market suggests $500K potential, guiding your valuation.
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