Finance
Valuation Range Estimator
Estimate reference valuation range based on ARR and multiple range according to capital raising stage. Results are for internal guidance only.
Dải bội số tham chiếu: 12–20× ARR
= 10.000.000.000 ₫
Khoảng định giá tham khảo
Thấp (12×)
120 tỷ ₫
Giữa (16×)
160 tỷ ₫
Cao (20×)
200 tỷ ₫
Bội số 16× trong dải 12–20× của Pre-seed
Chỉ tham khảo, KHÔNG phải định giá chính thức. Định giá thực tế do đàm phán và thẩm định quyết định.
This is not an official valuation and does not replace an independent appraisal. Low–high range derived from ARR × reference multiple range of the period being selected; Actual multiples are determined by the market and negotiations.
What is business valuation and why is this number always a range?
Valuation is the value that investors and businesses agree on for the entire business at the time of receiving capital. This tool takes annual recurring revenue and multiplies it by the common multiple range at each stage of fundraising, thereby providing a reference range instead of a single number. Please note that this is only a reference range for internal guidance; The actual price is determined by the negotiation and appraisal process between the two parties.
Dùng công cụ này khi nào
- When preparing to enter negotiations and need a mental reference range, instead of giving an emotional number.
- When an investor proposes a valuation that is far from expectations and you want to understand where the gap is coming from: adoption multiple, stage or growth rate.
- When designing the capital call structure: how much needs to be mobilised, corresponding to what percentage of shares the investor holds.
Basic calculation
Pre-investment valuation (pre-money) = ARR × Comparison multiple Reference range = ARR × low – high multiple range of the period
First, take the annual recurring revenue (ARR) and multiply it by the comparison multiple to get the pre-investment valuation. Each stage of capital raising has a range of common multiples in the market, so multiplying ARR with the lower and upper bounds of the range will yield a low - high reference range. Businesses with rapid growth, good profit margins and a stable customer base are often given multiples near the upper limit; otherwise it will lie near the lower bound. The multiple in the early stages is often higher because investors pay for growth potential, and in the later stages it is lower because the business is large and growth is expected to slow down.
Ví dụ: The business has an ARR of 10 billion VND and is in the Seed stage with a reference multiple range of 10 - 15 times. The reference valuation range is 100 - 150 billion VND; If you choose a multiple of 12 times, the middle level is 120 billion VND. On a pre-money basis of 120 billion VND, if an additional 30 billion VND is mobilised, the post-money is 150 billion VND and the investor holds 20% of the shares.
Thuật ngữ trong công cụ
- ARR – Annual recurring revenueAnnual Recurring Revenue
- Revenue that repeats regularly over a year, such as subscription fees or term service contracts. Do not include one-time revenue such as deployment fees or accompanying device sales.
- Comparison multipleRevenue multiple
- The number of times revenue is used to attribute business value. A 12x multiple means the business is valued at 12 years of current recurring revenue, reflecting market expectations of future growth.
- Comparison businessesComparables
- Group of businesses in the same industry, same stage and same business model that have recently had a capital raising or purchase transaction. The multiples of this group are the basis for deducing the reference multiple range.
- Pre-investment valuationPre-money valuation
- The business value is agreed upon at a time before new capital is injected. This is the number the two sides actually negotiate.
- Post-investment valuationPost-money valuation
- Equal to pre-investment valuation plus mobilised capital. The investor's ownership percentage is calculated on this number, so confusion between pre-money and post-money will lead to significant errors in the percentage of shares.
- Capital raising stageFunding stage
- The maturity level of the business according to market practices, from Pre-seed, Seed, Series A to Growth. Each stage is associated with a different range of multiples and a different level of business evidence expectations.
Đọc kết quả thế nào
Close to the lower edge of the band
Usually corresponds to businesses that grow slower than average, depend on few large customers or have thin profit margins. You should prepare data that proves revenue quality before negotiating.
Around the middle of the strip
Is the most popular region in actual transactions. In this region, the remaining difference mainly comes from the quality of the team, the clarity of documents and accompanying terms.
Close to the top or over the range
Only convince when there is evidence of outstanding growth, high customer retention rate or clear technological advantage. If there is a lack of evidence, a high valuation often makes the funding round last longer and puts pressure on later rounds.
Results from the tool are for reference only, based on the data you enter and accompanying assumptions. This is not investment advice or a commitment by the Fund as to its funding capacity.
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