Why not a DCF for a startup?

At pre-revenue or very early stage, future cash flows are too uncertain to rely on a single discounted baseline. Seed-stage work focuses on risk reduction, exit potential, and unit economics rather than historical profit. The engine computes four lenses (Berkus, Scorecard, VC, SaaS forward) in line with common European venture practice; the headline pitch pre-money weights Berkus, VC, and SaaS forward, with Scorecard as a regional benchmark in the report.

Which methods does the startup engine compute, and what drives the headline number?

All four are computed: (1) Berkus. Risk reduction by factor; (2) Scorecard. Regional comparable weighting; (3) VC method. Pre-money implied from an exit scenario; (4) SaaS forward. European ARR multiples on forward ARR when you report MRR/ARR. The headline pre-money for founders triangulates Berkus, VC, and SaaS forward in a stage-dependent blend; Scorecard does not feed that same weighted headline but appears on the football field as a comparison anchor.

How is this different from the Upswitch adaptive market approach for SMEs?

The SME market approach blends EBITDA-style methods (multiple, DCF, NAV, and others) on normalized historical financials. The startup workflow emphasises forward-looking, qualitative drivers when stable normalized EBITDA is not yet meaningful. From the homepage, registry context helps route you into the right experience.

Do I get a PDF I can send to investors?

Yes. The report includes (a) a Football Field across all four computed methods, (b) the headline pre-money (Berkus, VC, and SaaS forward triangulation) plus Scorecard as a benchmark, (c) a live cap-table simulator for dilution at your round size, and (d) a defensibility summary of assumptions. Drop it into a data room or send it to an angel syndicate.

Is this free for founders?

On Free you can run up to three valuations per year, including startup valuation where your plan allows it. Starter adds unlimited valuations, all ten methods, watermark-free PDF export for full SME workflows, and full benchmark access. Many founders invite their accountant as a next step for cap table work and SAFE modelling.

← All valuation methods

Valuation method

Startup valuation

Four lenses computed (Berkus, Scorecard, VC, SaaS forward). Headline pre-money blends Berkus, VC, and SaaS forward; Scorecard benchmarks regionally in the report.

What it is

The startup valuation engine is a dedicated workflow for pre-revenue and early-stage companies. The methodology follows common European venture practice and established startup literature. Unlike SME engines that anchor on historical earnings, it computes four startup-native lenses: Berkus-style risk reduction by factor, Scorecard-style regional benchmarking, the VC method (working back from an exit scenario), and a SaaS forward multiple when recurring revenue is relevant. The headline pre-money founders pitch triangulates Berkus, VC, and SaaS forward in a stage-dependent blend; Scorecard provides a regional sanity check and appears on the football field but does not feed the same weighted headline band. You get a defensible pre-money range you can share with investors, a syndicate, or your accountant.

When to use it

Essential for pre-seed and seed rounds, where DCF on historical data is usually not a reliable anchor. It is also useful before revenue scale becomes stable enough for revenue-based multiple methods. Particularly suited for: founders preparing for first investor conversations, angel syndicates underwriting a pre-money, accelerators marking portfolio companies to current value, and accountants helping a founder-client establish a defensible benchmark before a formal term sheet. Works from €0 revenue. What counts is milestones, market size, team quality, and exit hypotheses.

How Upswitch applies this method

Upswitch guides you through a short flow: (1) a Berkus-style risk-reduction scorecard across key factors, (2) optional forward-looking SaaS inputs (MRR, churn, CAC, growth) that pre-revenue founders can skip, and (3) a VC exit scenario with sector-aware defaults (Year 5 revenue, exit multiple, target ROI, round raised). The report includes a football field view across methods, a blended pre-money, dilution context for your round, a concise assumption summary, and an option to invite your accountant as a next step.

Data and benchmarks

Startup inputs centre on qualitative drivers, traction, and forward exit assumptions. When you have recurring revenue, European ARR benchmarks in the Upswitch Index can inform the SaaS leg. The broader SME multiple catalogue is most relevant once you have stable EBITDA-like earnings; it still helps contextualise recurring-revenue cases.

Explore the Upswitch SME Index→

Browse all 183 business types →

Sectors where this method is the headline

Live Upswitch Index data per sector. Click through to the multiples band that applies to your case.

Pre-revenue SaaS

Berkus + Scorecard + VC + SaaS-forward. Designed precisely for this stage.

See multiples on Index →

Cleantech / deep-tech

Long pre-revenue runway needs Berkus + VC method weighting, not earnings-based valuation.

See multiples on Index →

Creator-led media startups

Founder-IP-led ventures need Scorecard's qualitative weighting over financial extrapolation.

See multiples on Index →

In your professional report

Each method appears as a dedicated section in your branded PDF, with a full audit trail for every normalisation and adjustment.

In your professional report
Section	Included
Startup valuation	Value and method summary
Audit trail	Per adjustment, fully traceable

How it compares

How it compares
Method	Best for	Data needed
Upswitch adaptive market approach	Established SMEs with EBITDA	Historical financials
ARR multiple	Post-revenue SaaS	ARR + retention
DCF	Forecastable cash flows	Multi-year projections

Related comparisons

Startup valuation vs. Upswitch adaptive market approach

Pre-revenue startup or established SME? Two separate engines, two distinct stories. Pick the right one based on your business profile.

See comparison→

Startup valuation vs. ARR multiple

First MRR landed but still too early for a true SaaS multiple? Two approaches, one clear choice depending on your scale and runway.

See comparison→

Frequently asked questions

Startup valuation runs within the same yearly limits on Free (where your plan includes this engine). Starter adds unlimited valuations, all ten methods including full SME workflows, watermark-free PDF export for those reports, and full benchmark access.

Apply Startup valuation to your sector

Real-world examples of Startup valuation in action. Sector-specific multiples, normalisations and worked examples on the Upswitch Index.

Browse all sectors →

← All valuation methods

Valuation method

Startup valuation

Four lenses computed (Berkus, Scorecard, VC, SaaS forward). Headline pre-money blends Berkus, VC, and SaaS forward; Scorecard benchmarks regionally in the report.

What it is

When to use it

How Upswitch applies this method

Data and benchmarks

Explore the Upswitch SME Index→

Browse all 183 business types →

Sectors where this method is the headline

Live Upswitch Index data per sector. Click through to the multiples band that applies to your case.

Pre-revenue SaaS

Berkus + Scorecard + VC + SaaS-forward. Designed precisely for this stage.

See multiples on Index →

Cleantech / deep-tech

Long pre-revenue runway needs Berkus + VC method weighting, not earnings-based valuation.

See multiples on Index →

Creator-led media startups

Founder-IP-led ventures need Scorecard's qualitative weighting over financial extrapolation.

See multiples on Index →

In your professional report

Each method appears as a dedicated section in your branded PDF, with a full audit trail for every normalisation and adjustment.

In your professional report
Section	Included
Startup valuation	Value and method summary
Audit trail	Per adjustment, fully traceable

How it compares

How it compares
Method	Best for	Data needed
Upswitch adaptive market approach	Established SMEs with EBITDA	Historical financials
ARR multiple	Post-revenue SaaS	ARR + retention
DCF	Forecastable cash flows	Multi-year projections

Related comparisons

Startup valuation vs. Upswitch adaptive market approach

Pre-revenue startup or established SME? Two separate engines, two distinct stories. Pick the right one based on your business profile.

See comparison→

Startup valuation vs. ARR multiple

First MRR landed but still too early for a true SaaS multiple? Two approaches, one clear choice depending on your scale and runway.

See comparison→

Frequently asked questions

Apply Startup valuation to your sector

Real-world examples of Startup valuation in action. Sector-specific multiples, normalisations and worked examples on the Upswitch Index.

Browse all sectors →