Question 1

How is startup valuation calculated using the VC method?

Accepted Answer

VC method: Post-money valuation = exit value / expected MOIC. Pre-money valuation = post-money - investment amount. If a VC expects a 10x return and projects a $100M exit, post-money = $10M. Investing $2M gives a pre-money of $8M.

Question 2

What is MOIC in venture capital?

Accepted Answer

MOIC (Multiple on Invested Capital) = total value returned / total capital invested. A 3x MOIC means every $1 invested returned $3. Unlike IRR, MOIC does not account for time. A 3x MOIC in 2 years is far better than 3x in 10 years.

Question 3

What is burn rate and runway?

Accepted Answer

Burn rate is the monthly net cash outflow. Runway = cash on hand / monthly burn rate. A startup with $1.2M in the bank and $100K monthly burn has 12 months of runway. Most investors recommend raising before you fall below 6 months of runway.

Question 4

Are these venture capital tools free?

Accepted Answer

Yes - completely free, no sign-up required. Results export to CSV or PDF.

Free Venture Capital Tools & Calculators

VC calculators for founders and investors

Venture Capital Tools - FAQ