Post Money Valuation Estimator

The Post Money Valuation Estimator adds new financing proceeds to a pre-money valuation and calculates the new investor’s implied ownership. It provides a direct way to translate a headline pre-money term into the company value and ownership percentages immediately after the round. Use the result to compare financing offers with different valuation and check sizes. For a complete cap-table analysis, also model option-pool changes, outstanding convertibles, warrants, and any secondary share purchases separately.

Inputs

$
$
Result
Post-money valuation
New investor ownership
Existing holders after round
New capital added

1. Enter pre-money valuation
Use the negotiated value before the new financing proceeds.

2. Enter new investment
Use only the amount purchasing newly issued company shares.

3. Review post-money valuation
The calculator adds the two inputs.

4. Check ownership percentages
Investor ownership is investment divided by post-money valuation; existing holders retain the remainder.

Post-money valuation = Pre-money valuation + New investmentNew investor ownership = New investment ÷ Post-money valuationExisting holder ownership = 100% − New investor ownership

Where:

  • Pre-money valuation — company value before new cash
  • New investment — primary capital invested
  • Post-money valuation — company value after adding the new cash

Assumptions: The model assumes a single new-money priced investment and no simultaneous conversions or pool adjustments.

What the result means

Post-money valuation is the value immediately after the financing proceeds are included.

A secondary sale transfers existing shares and usually does not increase company post-money value in the same way as primary capital.

Given: Pre-money valuation = $8 million and investment = $2 million.

Calculation: Post-money valuation = $8M + $2M = $10M. Investor ownership = $2M ÷ $10M = 20%.

Result: The post-money valuation is $10 million, with 80% retained by pre-round holders in aggregate.

Does post-money valuation include the investment?

Yes. That is the central distinction from pre-money valuation.

Should secondary purchases be added as new investment?

Usually no, because secondary proceeds go to selling holders rather than the company.

Why might a term sheet show different dilution?

It may include a pre-money option-pool increase, SAFE or note conversions, or a different fully diluted share definition.

Can I compare two offers using only post-money valuation?

Compare both ownership sold and cash received. A higher post-money figure can still produce similar dilution if the check is also larger.

Does post-money value equal the company’s future sale price?

No. It is a financing convention at a point in time, not a guarantee of future market value.