Pre-Money & Post-Money Valuation Calculator

Pre-money valuation is what a company is worth before it takes on new investment. New capital is added on top of it to arrive at the post-money valuation.

Post-money = pre-money valuation + new investment. Investor ownership = investment ÷ post-money. For a $1M raise at a $4M pre-money, post-money is $5M and the investor owns 20%.

For a fixed raise amount, a higher pre-money means less dilution for founders. Lowering the pre-money to attract investors increases the equity you give up, so the two must be balanced.

SAFEs and notes convert at a later priced round, often at a valuation cap or discount. Their conversion increases the share count, so model them into your effective pre-money before agreeing to terms.