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Venture Tool

Pre-Money vs Post-Money Calculator

See exactly how a round's valuation, amount raised, and investor ownership relate — and what your stake is worth on paper. Free and private — nothing leaves your browser.

Pre-Money vs Post-Money

Startup valuation & ownership split.

Post-Money Valuation
€0.00
Investor Ownership
New stake sold
0.00%
Founder/Existing
Remaining stake
100.00%

How it works

Post-Money = Pre-Money + Amount Raised · Investor % = Amount / Post-Money

Pre-money is what the company is deemed worth before the new cash lands; post-money is that value plus the money itself. Investor ownership is always computed on post-money — which is why the distinction matters enormously in negotiation. '€2M at €8M' means 20% if the €8M is pre-money, but 25% if someone quietly meant post-money. The same three words, a five-point ownership swing.

Worked example

Raise €3M at a €12M pre-money valuation: post-money is €15M and the investor owns €3M ÷ €15M = 20%. A founder holding 50% before the round keeps 50% × 0.8 = 40%, worth €6M on paper. Had the €12M been post-money instead, the investor would own 25% and the founder 37.5% — always pin down which number is on the table before shaking hands.

Frequently asked questions

Which matters more, pre-money or post-money?

They contain the same information once the raise amount is fixed, but ownership is calculated on post-money. Term sheets increasingly quote post-money precisely because it makes the investor's percentage unambiguous.

How does the option pool affect the math?

Investors usually require the employee option pool to be created or topped up inside the pre-money — meaning it dilutes founders, not the new investor. A 10% pool carved from the pre-money can cost founders more than the round itself; model it explicitly.

What valuation should a startup raise at?

The market answer: whatever credible investors will pay, typically anchored to traction multiples in your sector. Beware maximizing it — a too-high valuation sets a bar the next round must clear, and down rounds carry anti-dilution and signaling pain.

No black boxes — the exact formula is shown above · Last reviewed July 2026