Pre Post Money Calculator for Series-a First Time Founder in Seattle

Pre-Money vs Post-Money Valuation

Understanding the difference between pre-money and post-money valuation is fundamental to fundraising. Pre-money is your company's value before investment; post-money includes the new capital.

How Valuation Affects Ownership

The relationship between pre-money valuation, investment amount, and post-money valuation directly determines what percentage of your company investors will own. Our calculator makes this math transparent.

How to Use the Pre Post Money Calculator

Enter your pre-money valuation and investment amount
See the resulting post-money valuation and investor ownership
Model multiple rounds to understand cumulative dilution
Compare different valuation scenarios side by side

When to Use This Calculator

You received a term sheet and want to understand what the proposed valuation means for your ownership
You are setting a valuation cap for a SAFE or convertible note and want to model the outcome
You want to plan multiple rounds of fundraising and see cumulative dilution over time
You are comparing two term sheets with different valuations and investment amounts

Key Metrics and Formulas

Post-Money Valuation = Pre-Money Valuation + Investment Amount. Investor Ownership % = Investment Amount / Post-Money Valuation. Founder Ownership % = Pre-Money Valuation / Post-Money Valuation. Price Per Share = Pre-Money Valuation / Pre-Money Shares Outstanding. For multi-round modeling, each subsequent round uses the previous post-money as the starting point for new dilution. Our calculator chains rounds together and shows the waterfall effect on founder ownership.

Common Mistakes to Avoid

Confusing pre-money and post-money in conversations: Always clarify which one you are discussing to avoid misunderstandings
Ignoring the option pool in valuation calculations: The option pool comes from pre-money, reducing your effective valuation
Optimizing for valuation over terms: A higher valuation with punishing liquidation preferences can be worse than a lower clean deal
Not modeling multiple rounds: The dilution from one round looks fine, but cumulative dilution across 3-4 rounds can leave founders with surprisingly little

Expert Tips

✓Always model at least 3 rounds ahead when evaluating a term sheet
✓Ask investors to specify whether their valuation is pre-money or post-money, and whether it includes the option pool
✓Use our calculator to compare scenarios where you raise smaller amounts at lower valuations vs larger amounts at higher valuations

Pre Post Money Calculator for Series-a First Time Founder