Estimate the pre-money valuation implied by a proposed investment and target investor ownership. The tool shows pre-money value, post-money value, and founder dilution.
The result shows the financing impact on ownership, valuation, conversion, or dilution. A stronger result protects founder ownership while preserving enough incentive for investors and employees.
This estimate is educational and should not replace legal, tax, or fundraising advice. Real term sheets may include preferences, pro rata rights, participation, vesting, and other provisions.
If a $1,000,000 investment buys 20%, post-money valuation is $5,000,000 and pre-money valuation is $4,000,000.
Divide the investment amount by the investor ownership percentage to get post-money valuation, then subtract the investment to get pre-money valuation.
The right pre-money valuation depends on traction, market, team, revenue, comparable rounds, and how much dilution you can accept.
A higher pre-money valuation reduces the ownership percentage investors receive for the same investment amount.
Many term sheets calculate the option pool on a pre-money basis, which can shift dilution toward founders.
Yes. Divide pre-money valuation by the existing fully diluted share count to estimate the implied share price before new investment.
| Module | What it shows |
|---|---|
| Main Result | Primary startup finance output for this calculator. |
| Ownership Impact | How the scenario changes equity or valuation. |
| Health Score | Practical quality score from the result. |
| Decision Signal | Recommended action based on the result. |