Pre-Money and Post-Money Valuation Calculator

Created by Mateusz Mucha and Tibor Pal, PhD candidate
Reviewed by Bogna Szyk and Jack Bowater
Based on research by
Larrabee, D.T.; Voss, J.A. Valuation Techniques: Discounted Cash Flow, Earnings Quality, Measures of Value Added, and Real Options (2012)
Last updated: Mar 14, 2022
Pre- and post-money valuation is what you need when startups and VC sit down to talk.

Post and pre-money valuation calculator does simple math to free your mind up to do more important things when you are negotiating your startup's valuation. It does not answer the question "how much is my startup worth" in the general sense (based on how much revenue, traction, margins or whether it breaks even). Instead, it does multi-directional math, and, if you provide any two values from investment amount, investor's equity, pre-money or post money valuation, you will receive the remaining two values. Let's take a typical scenario: a startup accelerator invests $25,000 for a 5% stake in the company. The calculator will tell you that this startup's valuation was $475k pre-money and is $500k post-money.

Interested in various methods of company valuation? Check out the discounted cash flow calculator!

Pre-money and post-money valuation

The difference is rather simple - pre-money valuation is how much the company is worth before the investment flows into the startup. Post-money valuation is how much a startup is worth after the money enters the company. Example: a startup that lets you store goat pictures in the cloud is valued at $10 million (pre-money). The ACME Venture Capital invests $2.5 million in a series A round. Now the company has whatever it had that was worth $10M, plus the $2.5M in cash, so it's worth $12.5 million. 20% of $12.5 million is $2.5 million, so ACME now has 20% of the company.

On a separate note, here are some tools that you may be interested in: the online marketing conversion and the website ad revenue calculators.

Mateusz Mucha and Tibor Pal, PhD candidate
Investment
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Investor's equity
%
Pre-money val.
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Post-money val.
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