The method
How it is worked out
Post = Ie Pre = Post − I
- I
- Investment amount
- e
- Equity offered, as a fraction
Startup Valuation Calculator
Calculate pre-money and post-money valuation from an investment amount and the equity offered. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- Option poolsA new employee option pool usually dilutes founders further.
- PreferencesLiquidation preferences and other terms matter as much as the headline number.
- Later roundsFuture funding rounds will dilute everyone again.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Startup Valuation Calculator
Translate a proposed investment and investor ownership percentage into an implied pre-money and post-money startup valuation. Founders can use it to understand a term sheet's headline numbers before considering dilution and control rights.
How it works and an example to tryShow less
How to use the result
Divide the money invested by the fraction of the company offered to obtain implied post-money valuation, then subtract the new investment for pre-money valuation. This assumes the percentage is the investor's post-money holding. Option pools, preference shares, convertible instruments and later rounds can change the founders' economic outcome.
Example to try
Suppose an investor offers 250,000 for 12% after the round. Enter those figures to see the implied valuations and the ownership left for existing holders. Check whether the term sheet creates an employee option pool before or after the investment, as that changes effective dilution.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Founders reading their first term sheet, angel investors sizing a cheque, and accelerator participants comparing offers with different equity asks.
Mistakes worth avoiding
- Forgetting that an option pool created before the round dilutes founders, not investors.
- Fixating on the valuation while ignoring liquidation preferences and control terms.
- Assuming a high valuation now is good news if it makes the next round harder to price.
Questions
What does the Startup Valuation Calculator do?
Calculate pre-money and post-money valuation from an investment amount and the equity offered.
How should I use the result?
Divide the money invested by the fraction of the company offered to obtain implied post-money valuation, then subtract the new investment for pre-money valuation. This assumes the percentage is the investor's post-money holding. Option pools, preference shares, convertible instruments and later rounds can change the founders' economic outcome.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with a startup valuation calculator?
Forgetting that an option pool created before the round dilutes founders, not investors. Fixating on the valuation while ignoring liquidation preferences and control terms. Assuming a high valuation now is good news if it makes the next round harder to price.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Calculator results are estimates based on the figures entered and are not financial, investment, legal or tax advice.