Pre-Revenue Core Methods
valuation_coreThe textbook's pre-revenue methods: Scorecard, Berkus, Risk-Factor Summation, VC Method (post- and pre-money), and exit terminal value. Use these first for early-stage startups. Method selects the formula, and each method names its own parameters: scorecard needs average_valuation + weights + scores; berkus takes five factor awards; risk_factor needs base_valuation + risk_ratings; vc_post_money needs terminal_value + target_return; vc_pre_money needs post_money + investment; terminal_value needs projected_revenue + multiple; triangulated needs the scorecard inputs plus terminal_value/target_return/investment. Routing: for SAFEs, tokens, ESG, network effects, or data-moat methods use valuation_emerging; for options or bull/base/bear scenario tables use valuation_advanced; for public-comparable multiples use valuation_comparables. Only method is required; all other parameters are method-dependent, so supply those the selected method names and omit the rest (defaults apply where defined). Rate and decimal inputs are fractions (0.10 = 10%); probability and weight lists are in [0,1] and sum to 1. Returns value, method, inputs, assumptions, chapter, formula_number and calculation steps; pure arithmetic — no I/O and no external calls — rounded to 2 decimals, with no auth or rate limits. An unknown method, or a missing method-required parameter, returns an error instead of a value.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| method | Yes | Formula to apply. Options: scorecard = V = V_avg · Σ(wᵢ·sᵢ) across 7 factors.; berkus = V = Σ factor awards, each capped at $500K.; risk_factor = V = V_base + Σ(rᵢ·$250K) over 12 risks.; vc_post_money = Post = Terminal / target ROI.; vc_pre_money = Pre = Post - Investment.; terminal_value = Terminal = projected revenue × multiple.; triangulated = Runs Scorecard and the VC Method together and returns their mean. | |
| scores | No | Factor multipliers aligned with weights (1.0 = average, >1 above average). | |
| weights | No | Portfolio or factor weights, each in [0,1] and summing to 1 (same order as the paired value list). | |
| multiple | No | Exit or market multiple applied to the metric. | |
| prototype | No | Berkus award for prototype / technology, 0 to 500,000. | |
| investment | No | Amount invested, currency units. | |
| post_money | No | Post-money valuation, currency units. | |
| sound_idea | No | Berkus award for soundness of the idea, 0 to 500,000 (USD). | |
| quality_team | No | Berkus award for management team, 0 to 500,000. | |
| risk_ratings | No | 12 risk factor ratings in [-2,2] (very low to very high); each unit shifts value ±250,000. | |
| target_return | No | VC target return multiple (e.g. 10 for a 10x target). | |
| base_valuation | No | Pre-adjustment baseline valuation, currency units. | |
| terminal_value | No | Expected exit / terminal value, currency units. | |
| product_rollout | No | Berkus award for product rollout / sales, 0 to 500,000. | |
| average_valuation | No | Average pre-revenue valuation for the sector, currency units. | |
| projected_revenue | No | Projected revenue at exit, currency units. | |
| strategic_relationships | No | Berkus award for strategic relationships, 0 to 500,000. |
Output Schema
| Name | Required | Description | Default |
|---|---|---|---|
| error | No | Error message when the call fails. | |
| steps | No | Intermediate steps for traceability. | |
| value | Yes | Computed valuation or metric. | |
| inputs | No | Echo of the normalised inputs used. | |
| method | No | Formula / method name that produced the result. | |
| chapter | No | Source textbook chapter. | |
| assumptions | No | Modelling assumptions applied. | |
| formula_number | No | Source textbook formula number (e.g. '3.1'). |