Startup Valuation Calculator
Works out what a funding round implies the company is valued at, before and after the money goes in.
Share sends a link that reopens these numbers. Copy details pastes the full breakdown as a list.
The formula
post-money = investment ÷ equity sold pre-money = post-money − investment price per share = pre-money ÷ shares before the round
The investor pays a price for a share of the company after the money arrives. Everything else follows from that.
What to watch out for
Count the shares before the round on a fully diluted basis. If an option pool is being created before the round as part of the deal, include it, because that lowers the price per share. The equity sold is the investor’s stake after the round.
Frequently Asked Questions
What is the difference between pre-money and post-money?
Post-money includes the new investment and pre-money does not. 2,000,000 for 20% gives a post-money valuation of 10,000,000 and a pre-money valuation of 8,000,000.
How is the price per share worked out?
Divide the pre-money valuation by the fully diluted shares before the round. 8,000,000 over 8,000,000 shares is 1.00 a share, so the investor receives 2,000,000 new shares.
Why can I not sell 100% in a round?
Pre-money value is what the existing shares are priced at. If the investor held all of the company afterwards, those shares would hold nothing, and the sum has no answer.