Pre & Post Money Valuation Calculator
Calculate startup valuations, investor equity, and dilution for funding rounds
Valuation Calculator
Calculation Method
Investment Parameters
Total amount being invested by the investor
Percentage of company equity the investor will own
Company valuation before the investment
Company valuation after the investment
Valuation Results
Detailed Analysis
Equity Distribution
Valuation Metrics
Investment Analysis & Recommendations
Example: Startup Accelerator Investment
Investment Scenario
Startup: Cloud storage for goat pictures
Investment Amount: $25,000
Investor Equity: 5%
Investor: ACME Venture Capital
Calculation Results
Pre-Money Valuation: $25,000 ÷ 5% - $25,000 = $475,000
Post-Money Valuation: $475,000 + $25,000 = $500,000
Founder Ownership: 95% (minimal dilution)
Assessment: Excellent terms with minimal dilution for founders
Dilution Guidelines
Minimal Dilution (≤5%)
Moderate Dilution (5-15%)
Standard Dilution (15-25%)
High Dilution (25%+)
Key Concepts
Pre-money = company value before investment
Post-money = pre-money + investment amount
Equity % = investment ÷ post-money × 100
Higher pre-money = less dilution for founders
Consider voting rights and board seats
Plan for future funding rounds
Understanding Pre and Post Money Valuations
What are Pre & Post Money Valuations?
- •Pre-Money: Company value before new investment
- •Post-Money: Company value after investment is added
- •Purpose: Determine investor equity percentage
- •Impact: Affects founder dilution and control
Key Considerations
- •Dilution: How much founder ownership decreases
- •Control: Voting rights and board composition
- •Future Rounds: Impact on subsequent fundraising
- •Valuation: Market comparable and growth potential
Formula & Calculation
Basic Formulas:
Post-Money = Pre-Money + Investment
Investor Equity % = Investment ÷ Post-Money × 100
Example:
Pre-Money: $475,000
Investment: $25,000
Post-Money: $500,000
Investor Equity: 5%
Strategic Benefits
- •Clear equity distribution calculation
- •Facilitates investment negotiations
- •Enables comparison of funding options
- •Plans for future funding rounds