Easily calculate your startup's pre-money and post-money valuations with our free online tool. Understand the impact of investment rounds on founder equity and investor stakes. This calculator helps founders and investors determine company worth, potential dilution, and the true ownership structure after funding.
Formula:
Understanding the key formulas is crucial for any startup funding round:
- Post-Money Valuation:
Investment Amount / (Percentage Equity Offered / 100) - Pre-Money Valuation:
Post-Money Valuation - Investment Amount - Investor's Post-Investment Equity %:
(Investment Amount / Post-Money Valuation) * 100 - Founder's Post-Investment Equity %:
(Founder's Pre-Investment Equity % * Pre-Money Valuation) / Post-Money Valuation
Where:
- Investment Amount: The total capital an investor is injecting.
- Percentage Equity Offered: The ownership percentage given to the investor for their capital.
- Founder's Pre-Investment Equity %: The percentage of the company founders own before the new investment.