Startup Valuation Calculator: Master Pre- and Post-Money Valuations

Our pre- and post-money valuation calculator simplifies basic math, empowering startup owners to focus on critical negotiation points for your startup's valuation. Unlike general valuation tools that assess worth based on revenue, traction, margins, or profitability, this calculator serves a specific purpose.

It performs multi-directional calculations, allowing you to input any two values—investment amount, investor’s equity percentage, pre-money valuation, or post-money valuation—and instantly receive the remaining two. For instance, if a startup accelerator invests $25,000 for a 5% equity stake, the tool will calculate a $475,000 pre-money valuation and a $500,000 post-money valuation.

Understanding Pre- and Post-Money Valuation for Startups

Pre-money valuation: This represents the company’s equity value before new investment funds are added, offering a baseline for negotiations.
Post-money valuation: This reflects the company’s total worth after investment, incorporating the new capital.

Consider this example: A cloud-based goat photo storage startup with a $10 million pre-money valuation secures a $2.5 million Series A investment from ACME Venture Capital. Post-money, the valuation rises to $12.5 million, with ACME owning 20% equity. Both valuations are equity-based. Use our SEO-optimized startup valuation calculator to test this scenario or input your own data.

FAQs for Startup Owners: Boost Your Valuation Knowledge

What is Pre-Money Valuation?

Pre-money valuation is the estimated worth of your startup before receiving investment. It’s always lower than the post-money valuation and a key factor in equity distribution.

What is Post-Money Valuation?

Post-money valuation is the total value of your startup after investment funds are included. Typically higher than pre-money, it’s crucial for understanding investor stakes.

How Do I Calculate Post-Money Valuation from Pre-Money?

Follow these steps: