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https://github.com/brainfkt/startup_valuation_calculator


https://github.com/brainfkt/startup_valuation_calculator

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README 

          
# Startup Valuation Calculator



A comprehensive Streamlit-based application for calculating startup valuations using multiple professional methodologies. This tool provides detailed financial analysis, interactive charts, and professional PDF reporting capabilities.



## 🚀 Features



### Valuation Methods

- **DCF (Discounted Cash Flow)**: Calculate intrinsic value based on projected cash flows

- **Market Multiples**: Compare valuation using industry benchmarks

- **Scorecard Method**: Evaluate startups against key criteria

- **Berkus Method**: Pre-revenue startup valuation approach

- **Risk Factor Summation**: Adjust valuations based on risk assessment

- **Venture Capital Method**: Calculate present value from projected exit scenarios



### Key Capabilities

- **Interactive Charts**: Real-time visualization using Plotly

- **PDF Reports**: Professional reports with embedded charts and data tables

- **Calculation History**: Track and compare multiple valuations

- **Data Validation**: Comprehensive input validation with helpful error messages

- **Export Functionality**: Download detailed PDF reports



## 📋 Prerequisites



- Python 3.11 or higher

- Streamlit

- Required Python packages (see requirements below)



## 🛠️ Installation



1. Clone or download the project files

2. Install required packages:

   ```bash

   pip install streamlit pandas numpy plotly reportlab pillow

   ```

3. Run the application:

   ```bash

   streamlit run app.py

   ```



## 📖 User Guide



### Getting Started



1. **Launch the Application**: Run `streamlit run app.py` in your terminal

2. **Select Valuation Method**: Choose from the sidebar menu

3. **Enter Data**: Fill in the required fields for your chosen method

4. **Calculate**: Click the calculation button to generate results

5. **Review Results**: Examine charts, metrics, and analysis

6. **Generate Reports**: Use the calculation history to create PDF reports



### Valuation Methods Guide



#### DCF (Discounted Cash Flow)

**Best for**: Companies with predictable cash flows

**Inputs**:

- Cash flow projections (3-10 years)

- Discount rate (WACC) - typically 8-25%

- Terminal growth rate - typically 0-5%



**Tips**:

- Ensure discount rate > terminal growth rate

- Use conservative growth assumptions

- Consider multiple scenarios



#### Market Multiples

**Best for**: Companies with comparable public companies

**Inputs**:

- Industry sector selection

- Financial metric (Revenue/EBITDA)

- Metric value

- Industry multiple



**Tips**:

- Research current market conditions

- Use recent transaction data

- Consider company stage and growth



#### Scorecard Method

**Best for**: Early-stage startups with limited financial history

**Inputs**:

- Base valuation (comparable company)

- Criteria scores (0-5 scale):

  - Management team quality

  - Market opportunity size

  - Product/technology

  - Competitive environment

  - Marketing/sales channels

  - Funding requirements

  - Exit potential



**Tips**:

- Be realistic in scoring

- Compare against similar stage companies

- Weight criteria based on importance



#### Berkus Method

**Best for**: Pre-revenue startups

**Inputs**:

- Criteria scores (0-5 scale):

  - Basic value (concept quality)

  - Technology risk

  - Execution risk

  - Core relationships

  - Production/market risk



**Maximum Values**:

- Each criterion: $500K maximum

- Total valuation: $2.5M maximum



#### Risk Factor Summation

**Best for**: Adjusting valuations based on specific risks

**Inputs**:

- Base valuation

- Risk factor ratings (-2 to +2):

  - Management quality

  - Development stage

  - Legislative/political risk

  - Manufacturing risk

  - Sales/marketing risk

  - Funding/capital risk

  - Competition risk

  - Technology risk

  - Litigation risk

  - International risk

  - Reputation risk

  - Exit potential



#### Venture Capital Method

**Best for**: VC investment scenarios

**Inputs**:

- Expected revenue at exit

- Exit multiple (revenue multiple)

- Required annual return rate

- Years to exit (typically 3-7 years)

- Investment amount (optional)



## 🔍 Understanding Results



### Metrics Displayed

- **Valuation**: Primary output value

- **Supporting Metrics**: Method-specific calculations

- **Charts**: Visual representation of data and results



### PDF Reports

Generated reports include:

- Executive summary

- Detailed methodology explanation

- Visual charts and data tables

- Calculation history comparison

- Professional formatting for sharing



## ⚠️ Important Considerations



### Data Quality

- Ensure all inputs are realistic and well-researched

- Use current market data when available

- Consider multiple scenarios and methods



### Limitations

- Valuations are estimates based on assumptions

- Market conditions change rapidly

- Multiple methods should be used for validation

- Professional advice recommended for significant decisions



### Best Practices

- **Use Multiple Methods**: Compare results across different approaches

- **Document Assumptions**: Keep records of your input rationale

- **Regular Updates**: Refresh valuations as data changes

- **Sensitivity Analysis**: Test how changes affect valuations



## 🔧 Technical Features



### Data Validation

- Comprehensive input validation

- Range checking and business logic validation

- Warning messages for unusual values

- Suggested corrections for invalid inputs



### Calculation History

- Automatic saving of all calculations

- Comparison across different methods

- Chart visualization in history

- Bulk PDF report generation



### Export Capabilities

- Professional PDF reports

- Embedded charts and visualizations

- Detailed data tables

- Company-ready formatting



## 📊 Example Workflows



### Technology Startup Valuation

1. Start with **Scorecard Method** for initial assessment

2. Use **Berkus Method** if pre-revenue

3. Apply **DCF Method** once projections are available

4. Validate with **Market Multiples** using tech sector data

5. Generate comprehensive PDF report



### Investment Decision Analysis

1. Use **Venture Capital Method** for target returns

2. Apply **Risk Factor Summation** for risk adjustment

3. Compare with **Market Multiples** for reality check

4. Document all assumptions and scenarios



## 🚨 Troubleshooting



### Common Issues

- **Calculation Errors**: Check that discount rate > terminal growth rate

- **Large Values**: Verify input units (thousands vs millions)

- **PDF Generation**: Ensure all calculations are completed first

- **Missing Charts**: Refresh the page and recalculate



### Validation Messages

- **Red (Errors)**: Must be fixed before calculation

- **Yellow (Warnings)**: Review but calculation can proceed

- **Blue (Info)**: Additional context or suggestions



## 📈 Advanced Usage



### Custom Weightings

- Scorecard method supports custom criteria weights

- Ensure weights sum to 100%

- Adjust based on company-specific factors



### Scenario Analysis

- Run multiple calculations with different assumptions

- Use calculation history to compare scenarios

- Generate reports showing sensitivity to key variables



### Integration Tips

- Export data for further analysis

- Use results as input to financial models

- Combine with other due diligence processes



## 🤝 Support



For questions or issues:

- Review input validation messages

- Check calculation assumptions

- Ensure all required fields are completed

- Verify data ranges and formats



## 📝 Version History



### Current Version

- Six valuation methods implemented

- Interactive Plotly charts

- Professional PDF reporting

- Comprehensive data validation

- Calculation history tracking



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*This tool is designed for educational and analytical purposes. Professional financial advice should be sought for investment decisions.*