Startup Valuation Calculator
Calculate early-stage and growth startup valuations using Discounted Cash Flow (DCF) with WACC and qualitative Berkus milestones in INR.
Valuation Parameters
₹ INR Default1. Discounted Cash Flow (DCF) Inputs
2. Berkus Milestones (User-Adjustable Illustrative Values)
Min to Max indicative range for seed & early venture rounds.
5-Year DCF Cash Flow Projections
| Year | Revenue | FCF | PV |
|---|---|---|---|
| Y1 | ₹1.35 Cr | ₹12.10 L | ₹10.52 L |
| Y2 | ₹1.82 Cr | ₹16.34 L | ₹12.35 L |
| Y3 | ₹2.46 Cr | ₹22.05 L | ₹14.50 L |
| Y4 | ₹3.32 Cr | ₹29.77 L | ₹17.02 L |
| Y5 | ₹4.48 Cr | ₹40.19 L | ₹19.98 L |
Startup valuations are indicative financial estimates and scenario models. Actual negotiated valuations depend on investor appetite, market conditions, negotiation dynamics, and statutory valuation requirements.
Startup Valuation Methodologies Explained
A. Discounted Cash Flow (DCF) Method
The DCF method projects Free Cash Flows to Firm (FCFF) over a 5-year forecast horizon and discounts them back to the present day using the startup's Weighted Average Cost of Capital (WACC):
Suitable for post-revenue startups with predictable unit economics, positive gross margins, and multi-year financial forecasts.
B. The Berkus Early-Stage Method
Developed by prominent angel investor Dave Berkus, this framework assigns incremental economic value across 5 critical enterprise de-risking milestones:
- Sound Idea: Up to ₹4 Cr for basic value and market opportunity.
- Prototype: Up to ₹4 Cr for functional technology and IP.
- Quality Team: Up to ₹4 Cr for proven execution leadership.
- Strategic Alliances: Up to ₹4 Cr for enterprise distribution channels.
- Product Rollout: Up to ₹4 Cr for initial commercial sales and traction.
Frequently Asked Questions
What is the DCF method for startups?
The Discounted Cash Flow (DCF) method forecasts future Free Cash Flows (FCF) and discounts them back to present value using the Weighted Average Cost of Capital (WACC).
How does the Berkus Method value pre-revenue startups?
The Dave Berkus method assigns incremental financial value across 5 core risk-reduction milestones: sound idea, working prototype, quality management team, strategic relationships, and product rollout traction. Each category is modeled with illustrative user-adjustable scores.
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