We would love to help as much as we can to all our startups. Following are a few startup resources to help you find solutions to some of the most frequent questions you have in valuating your startup.
Pre-money and Post-Money Valuation Calculator
Using our Pre-money and Post-money valuation calculator: an example
When you are fundraising for your company, the investor might be interested in investing your company in exchange for a certain equity. This calculator helps you figure out what is your pre-money and post-money valuation. Which means, what is your company worth when you receive an investment in your company.
SaaS Lifetime Value Calculator
Using our LTV calculator: an example
Let’s assume you run a company that has a SaaS product with multiple subscription plans. You want to find out what is your LTV.
- Determine the number of customers. Let’s say you have 25 customers in total.
- Calculate your MRR. You make a handsome $6000 a month.
- The SaaS lifetime value calculator will automatically divide the MRR by the number of customers to get your ARPA – in this case, $250.
- Decide on your gross margin. Let’s say that you need to spend 35% of your revenue on maintenance, so your gross margin is equal to 65%.
- Determine your churn rate. Let’s say that during the first month, only 1 customer canceled their subscription plan. Will will assume that the churn rate will be constant. 1 of 25 customers is 4%.
- Decide on the account expansion cost. Let’s say it is equal to $0 – you don’t plan to introduce an expansion option.
- The LTV calculator will automatically find the LTV of your product. For our example, it is equal to $4062.50. That means that every customer you have will spend, on average, $4062.50 on your SaaS product before you they unsubscribe.