Startup Valuation Benchmarks
What are realistic valuations at each stage? Here's what the data says, what industries pay premiums, and how to position yourself for a competitive valuation.
You're raising your Series A. An investor tells you your company is worth $15M pre-money. Is that good? Bad? Average? Most founders don't know the benchmarks, so they can't evaluate if they're being offered a fair price.
Valuation benchmarks vary by stage, industry, metrics, and market conditions. But there are patterns. We've compiled what we see in the market to give you context. Working with a fractional CFO can help you benchmark against comparables and negotiate from a position of knowledge.
The Caveat
These are observed medians, not rules. Your valuation depends on: ARR, growth rate, market size, competitive position, team, and investor appetite. These benchmarks give you a starting point for negotiations, not a guarantee.
Typical Valuations by Stage
Here's what we observe across thousands of funding rounds (2023-2025 data):
Seed$500K - $3M (Post-Money)
- Typical ticket: $100K - $500K per investor
- What matters: Founding team, market size, early traction
- Revenue requirement: Usually none, but <$100K ARR is common
- Valuation driver: Team quality + market thesis (80% of valuation math)
- Note: SAFEs at $3-5M caps common at this stage
Example: 2 founders from YC, building in hot category (AI) = $2M+. Same founders in sleepy category (B2B software) = $1M.
Series A$8M - $25M (Pre-Money)
- Typical ticket: $2M - $5M per investor
- What matters: Revenue traction, unit economics, go-to-market fit
- Revenue requirement: $100K - $500K ARR typical
- Valuation driver: ARR + growth rate (60% of math), team (40%)
- Typical multiple: 8-12x ARR for B2B SaaS (varies widely by category)
Example: $500K ARR, 15% MoM growth = $8-12M pre-money. Same ARR but 5% growth = $4-6M pre-money.
Series B$30M - $100M+ (Pre-Money)
- Typical ticket: $5M - $15M per investor
- What matters: Path to $100M+, market leadership, unit economics profitability
- Revenue requirement: $2M - $10M ARR minimum
- Valuation driver: ARR + growth rate (50%), TAM expansion (40%), unit economics (10%)
- Typical multiple: 6-10x ARR (step down from Series A as revenue becomes more important than growth story)
Example: $5M ARR, 20% growth, strong unit economics = $30-50M pre-money. Same metrics in hot category = $50-80M.
Series C+$100M+ (Pre-Money)
- Typical ticket: $10M - $50M+ per investor
- What matters: Market dominance, path to IPO, profitability horizon
- Revenue requirement: $10M+ ARR, often $20M-50M
- Valuation driver: Proven business model (60%), market dominance (30%), team (10%)
- Typical multiple: 4-8x ARR (mature revenue basis more important)
Example: $20M ARR, profitable, owned market category = $80-160M pre-money.
Industry Multiples Vary Dramatically
The same revenue gets different valuations in different categories. Here's what we observe for $1M ARR companies:
| Category | Series A Multiple | Notes |
|---|---|---|
| AI / ML (hot) | 20-30x | Premium for category, founder pedigree |
| Developer Tools | 12-18x | High TAM, strong unit economics |
| B2B SaaS (boring) | 8-12x | Mature category, proven metrics |
| Fintech | 10-16x | Regulatory risk vs growth potential |
| Hardware | 4-8x | Capital intensity, supply chain risk |
| E-commerce / Marketplace | 3-6x | Low margins, competitive intensity |
A $1M ARR AI startup might get a $15M Series A valuation. The same metrics in e-commerce might be worth $5M. Category matters as much as the business fundamentals.
Category Premium Fades
AI premium is highest at early stage. By Series B, growth rate and unit economics matter more than category. Don't rely on category to justify a high valuation if your metrics don't support it.
Growth Rate: The Most Important Variable
Two companies with the same revenue get very different valuations based on growth rate. Here's a Series A example (B2B SaaS):
Company A: $300K ARR, 25% MoM growth
Typical valuation: $3-4M pre-money (10-13x multiple)
Company B: $300K ARR, 5% MoM growth
Typical valuation: $1.5-2M pre-money (5-7x multiple)
Difference: 2x valuation for same revenue
The growth story is worth more than the current revenue. Growth rate is the single strongest predictor of Series A valuation.
By Series B, growth rate still matters, but unit economics and path to profitability become equally important. By Series C, the growth needs to come with a clear path to $100M+, not just be "fast".
Unit Economics as Valuation Ceiling
High growth is great, but if your unit economics are broken, investors will cap your valuation. Here's how:
Strong Unit Economics (LTV:CAC > 3x, NRR > 120%)
Investor assumes your growth is efficient and sustainable. You get full valuation multiple. Growth + unit economics = premium valuation.
Weak Unit Economics (LTV:CAC < 2x, NRR declining)
Investor discounts your valuation because they don't believe your growth is sustainable. You might get 50-70% of the valuation multiple despite similar growth rate.
Broken Unit Economics (LTV:CAC < 1x, high churn)
Investor assumes you're buying growth unsustainably. You won't get a premium valuation. They might walk or offer a flat round. Fix your unit economics first.
Fix Unit Economics First
If you're losing money on every customer, don't try to raise at a high valuation. Optimize for unit economics, then raise. Your Series B will be better.
Market Conditions Shift Everything
2023-2024 was a down market. Valuations are 30-40% higher in 2025, but still below 2021 peaks. Context:
2021-2022 (Peak)
Flush with capital. Series A multiples were 15-25x ARR even for mediocre growth. Doesn't represent normal market.
2023-2024 (Trough)
Venture capital was scarce. Multiples compressed to 6-10x ARR even for great growth. Fundraising was hard.
2025 (Current)
Returning to normal. Series A multiples back to 10-15x for good growth. But not peak 2021 levels. This is probably the "normal" market.
Use Recent Data
If someone quotes you 2021 multiples as "normal," they're wrong. Use recent (last 6-12 months) comparables. Ask your investors: "What other companies have you funded with similar metrics?"
Benchmarking Your Company
Here's how to assess if an investor's valuation offer is fair:
Calculate Your Multiple
Proposed valuation ÷ current ARR = multiple. Is it 8x, 12x, 20x?
Research Comps in Your Category
Find 5-10 companies raised in your category in the last 6 months. PitchBook, Crunchbase, asking investors all work.
Adjust for Growth Rate Differences
If comp company had higher growth, their multiple should be higher. Adjust expectations accordingly.
Check Their Unit Economics
If comp company had better unit economics, higher multiple is justified. If yours are better, you deserve a premium.
See Where You Land
If your multiple is in the median range of comps, it's fair. If it's high percentile, you're getting premium valuation. Outliers warrant skepticism.
Bottom 25% (Lagging)
You can negotiate up. Either investor undervalues you, or your metrics are weaker than comps. Fix metrics or find better investor.
Median (Fair)
Valuation is reasonable. Compare to 2-3 investors. If all say similar number, it's market clearing price.
Top 25% (Premium)
You're getting a good deal, but investor believes in your story. Take it before they realize their mistake.
Outlier High (Red Flag)
Either investor is making a strategic bet, or they're planning to negotiate hard on terms later. Understand the catch.
Valuation Benchmark Mistakes
1. Using 2021 Comparables
The startup that got a 20x multiple in 2021 would get 12x today. Don't use old data. Use last 6-12 months only.
2. Comparing Apples to Oranges
Company with 50% growth getting 15x multiple. Your 10% growth shouldn't get the same. Adjust for growth rate.
3. Ignoring Unit Economics in Comparables
Comp company had 4x LTV:CAC, yours is 2x. They deserve a higher multiple. You can't claim the same valuation if your unit economics are weaker.
4. Not Adjusting for Market Conditions
We're in 2025, not 2022. Multiples are lower. If investor offers peak-2021 pricing, it's either exceptional or they're fibbing about their portfolio.
5. Focusing on Valuation Instead of Terms
High valuation with 3x participating preferred is worse than lower valuation with 1x non-participating. Look at the whole deal, not just the valuation number.
Is Your Valuation Fair?
Eagle Rock CFO helps founders benchmark valuations, understand comparables, and negotiate from a position of knowledge.
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