One of the most common mistakes we see among pre-revenue startups is overvaluing their business. While it’s tempting to set a high valuation, doing so can put investors off and cost you the deal.
The reality is, there’s no single, universally accepted way to value a pre-revenue business. That’s why we created this guide to valuing pre-revenue startup, to give founders a practical, credible framework for valuation.
Our approach blends two established methods with a simplified Venture Capital model that we have slightly adjusted:
- Berkus Method – rewards foundational milestones.
- Scorecard Method – benchmarks realism against the market.
- Ebico VC Model – prices the upside through an exit lens while applying a cautious IRR.
Together, these methods help you build a valuation that reflects your vision, market comparables, and economic potential, without scaring investors away. By following this guide, you’ll be better equipped to determine a fair equity offer and may increase your chances of securing investment.