Startup valuation
- Post-money valuation
- $2,500,000
- Pre-money valuation
- $2,000,000
- Founders and earlier holders keep, percent
- 80
Every figure on this page is computed from the inputs you enter, by the method stated below it, including the multiple, which is yours. MultiplesBook publishes no multiples, no comps and no survey: the defaults are a worked example to replace with your own.
The figures above start from a worked example ($2,500,000). Change any input and the answer updates as you type.
Download the Startup valuation worked example (CSV)
This values a startup the way a funding round does. The money raised divided by the equity given for it is the post-money valuation; less the money raised it is the pre-money; and 100 less the equity given is what the founders and earlier holders keep. Nothing else enters into it: the round is a price two parties agreed for a slice, and the valuation is what that price implies. Free, on the page, no account; the paid plan keeps each round against the company.
Money raised over equity given is the post-money
If investors put in a sum and own a share of the company afterwards, the whole company is worth the sum divided by the share: $500,000 for 20% is $2,500,000. That is the post-money valuation, and it is the number the round is described by, whether or not anyone would pay it for the whole company.
Less the money raised is the pre-money
The pre-money valuation is what the company was priced at before the new money went in: the post-money less the money raised. Term sheets are usually written on the pre-money, and the two are confused often enough that the tool shows both with the arithmetic between them.
What the founders keep is the line that matters
100 less the equity given is the share the founders and earlier holders still own after the round, before any option pool the term sheet carves out. It is the number the people at the table actually read, and it is shown beside the valuation so a high number and a large slice are seen together.
Startup valuation: common questions
Is this a free startup valuation calculator?
Yes. Enter the money raised and the equity given for it, and it works out the post-money and pre-money valuations and what the founders keep on the page, no account and no card. MultiplesBook Pro keeps each round against the company so the next one starts from the last.
What is the difference between pre-money and post-money?
Post-money is the company's valuation including the new money, money raised divided by the equity given; pre-money is the valuation before the new money, post-money less the raise. A term sheet at a pre-money of $2,000,000 raising $500,000 is a post-money of $2,500,000 and 20% to the investors.
Does the option pool change the numbers?
Yes, when the term sheet carves an option pool out of the pre-money the founders' share falls further than 100 less the equity given. The tool shows the round's own arithmetic; enter the equity given including any pool the investors require to see the founders' real share.