This estimator derives an implied pre-money valuation from a proposed investment and the post-money ownership offered to the investor. It is intended for pre-seed founders evaluating headline deal terms when the round amount and target equity stake are known.
The calculator converts those terms into post-money and pre-money valuations, then shows the implied price paid for each percentage point of ownership. It is a negotiation aid, not a formal valuation opinion; qualitative factors, security terms, option pools, and convertible instruments can materially change the economics.
1. Enter investment amount
Use the amount of new capital associated with the proposed ownership stake.
2. Enter investor ownership
Provide the investor’s post-money percentage after the financing.
3. Read implied valuations
The calculator backs into post-money value, then subtracts the investment to get pre-money value.
4. Test alternative terms
Adjust either input to compare how ownership expectations change implied valuation.
Post-money valuation = Investment ÷ Investor ownership rate Pre-money valuation = Post-money valuation − Investment
The ownership rate is converted from a percentage to a decimal. The model assumes the stated stake is fully attributable to the new cash investment.
The main result is the company value implied immediately before the proposed investment.
Different security rights can make identical headline valuations economically different.
Given: A $750,000 investment for 15% post-money ownership.
Calculation: Post-money valuation = $750,000 ÷ 0.15 = $5,000,000. Pre-money valuation = $5,000,000 − $750,000 = $4,250,000.
Result: The proposal implies a $4.25 million pre-money valuation.
The investor stake after the round directly links the investment amount to post-money valuation.
No. A 100% stake would leave no pre-money ownership and is outside the intended financing model.
No. Convertible securities require separate conversion calculations based on their specific terms.
Not necessarily. Round size, investor rights, runway, and future financing needs also matter.
This estimator infers valuation from financing terms rather than operating metrics such as revenue or growth.