Advanced Calculator Inputs
Formula Used
Direct post money valuation:
Post Money Valuation = Pre Money Valuation + New Cash Investment + Converting Securities
Ownership based valuation:
Post Money Valuation = New Cash Investment ÷ Target Investor Ownership
Price per share:
Price Per Share = Implied Pre Money Valuation ÷ Current Fully Diluted Shares
Investor shares:
Investor Shares = New Cash Investment ÷ Price Per Share
Discounted note conversion:
Note Shares = Note Balance ÷ [Price Per Share × (1 − Discount Rate)]
Post round option pool expansion:
Added Pool Shares = [(Target Pool % × Base Post Shares) − Existing Pool Shares] ÷ (1 − Target Pool %)
How to Use This Calculator
- Enter your pre money valuation or choose the target ownership method.
- Add the new cash investment expected in the financing round.
- Enter current fully diluted shares for share price and dilution analysis.
- Add existing and target option pool percentages.
- Include convertible securities, interest, and discount when they convert.
- Press the calculate button to view valuation and ownership results.
- Use CSV or PDF buttons to save the funding report.
Example Data Table
| Input |
Example Value |
Meaning |
| Pre Money Valuation |
$5,000,000 |
Company value before the new round. |
| New Cash Investment |
$1,250,000 |
Fresh money invested by new investors. |
| Convertible Security Principal |
$250,000 |
Existing note or similar instrument converting. |
| Current Fully Diluted Shares |
1,000,000 |
Shares before issuing new investor shares. |
| Target Option Pool |
12% |
Desired post round employee pool size. |
| Estimated Post Money Valuation |
$6,500,000 |
Pre money plus new and converting capital. |
Post Money Valuation Overview
Post money valuation shows what a company is worth after new financing is added. It helps founders, investors, and advisors understand the price of a funding round. The value affects dilution, share price, option planning, and future negotiation power.
Why It Matters
A round may look simple at first. A company has a pre money value. An investor adds cash. The post money value is the sum. Yet real deals often include option pool changes, convertible notes, accrued interest, and target ownership. These items can shift the real ownership result. They can also change how much founders keep after the round closes.
Key Funding Insights
This calculator lets you compare direct valuation math with ownership based thinking. The direct method starts with pre money valuation and adds new capital. The ownership method begins with the desired investor percentage, then derives the implied post money value. Share inputs help estimate new shares issued and the fully diluted cap table after investment.
Option Pool Impact
Investors often ask for a larger employee option pool before or during a round. A larger pool can create extra dilution for existing holders. This calculator estimates added pool shares needed to reach a target post round percentage. That makes the effect visible before term sheet discussions become final.
Convertible Securities
Notes and similar instruments may convert in the priced round. Their principal and interest can become ownership. A discount may create more shares for note holders because they receive a lower conversion price. The tool estimates that effect and shows a separate note holder percentage.
Using Results Carefully
Use the results as planning estimates. Actual legal documents may use special definitions. They may include warrants, pro rata rights, liquidation preferences, or exclusions. Always compare the output with your cap table and term sheet. For major financing decisions, review the numbers with a finance professional and legal counsel.
Planning Before Negotiation
Run several scenarios before sharing terms. Change the investment size, note balance, and option target. Watch how ownership moves. Small percentage changes can produce large dollar differences. Clear modeling helps teams defend fair terms and avoid surprises during board and investor meetings.
FAQs
1. What is post money valuation?
Post money valuation is the company value after a financing round closes. It usually equals pre money valuation plus new investment. It helps estimate investor ownership and founder dilution.
2. How is pre money valuation different?
Pre money valuation is the company value before new capital enters. Post money valuation includes the new investment and any converting securities added in the round.
3. Why does investor ownership matter?
Investor ownership shows how much of the company the investor receives. It affects control, dilution, future financing, and the economic split between existing and new holders.
4. Does an option pool reduce founder ownership?
Yes. Increasing the option pool usually creates extra shares. Those shares dilute existing holders unless the deal documents place the burden elsewhere.
5. What are converting securities?
Converting securities include notes or similar instruments that become shares during a priced round. Their principal, interest, and discounts can affect ownership percentages.
6. Why include a conversion discount?
A discount gives note holders a lower conversion price. A lower price creates more shares for the same note balance, increasing their ownership after conversion.
7. Is this calculator a legal cap table?
No. It is a planning tool. Legal cap tables may include special terms, exclusions, warrants, preferences, and investor rights that need professional review.
8. Can I export the results?
Yes. After calculation, use the CSV button for spreadsheet review. Use the PDF button for a clean summary report.