---
title: "Post-money valuation calculator"
description: "Calculate post-money valuation of a company and the investor share (%) with the investment amount and pre-money valuation."
canonical: "https://churnkey.co/blog/postmoney-valuation-calculator"
category: "blog"
author: "Team Churnkey"
author_role: "Retention research"
date_published: "2024-11-12"
last_updated: "2024-11-19"
---

# Post-money valuation calculator

By Team Churnkey, Retention research · Published 2024-11-12

If a company raises $10m at a pre-money valuation of $40m, the post money valuation would be $50m and the investor will get a 20% share.

Post-money valuation is a simple yet important way to determine the total value of your company after an investment round.

Pre-money valuation is the value of a company before new funding. Post-money valuation is the value after receiving the new funding.

## How to use the post-money valuation calculator

To calculate the post-money valuation of your round, input the following data points:

-   **Investment amount,** that is the amount of money raised in the round
-   **Pre-money valuation**, the assessment made by the investor on the company worth before receiving the new money

The output includes:

-   Post-money valuation = Pre-money valuation + Investment amount
-   Investor share (%) = Investment amount / Post-money valuation

## An example of post-money valuation

A startup raises $5m investment round at a $20m pre-money valuation. This leads to:

-   Post-money valuation = $5m + $20m = $25m
-   Investor share (%) = $5m / $25m = 20%

## Practical examples of post-money valuation

| Company | Round | Pre-money Valuation | Investment Amount | Post-money Valuation | Investor Share (%) |
| --- | --- | --- | --- | --- | --- |
| Stripe | Series G | $34 billion | $600 million | $34.6 billion | 1.73% |
| SpaceX | 2020 Funding | $36 billion | $1.9 billion | $37.9 billion | 5% |
| Robinhood | Series F | $7.6 billion | $280 million | $7.88 billion | 3.55% |
| Instacart | 2020 Funding | $13.7 billion | $200 million | $13.9 billion | 1.44% |
| Airbnb | Series E | $20 billion | $850 million | $20.85 billion | 4.08% |

## Insights on post-money valuation

Here are some additional insights related to post-money valuation that might be helpful:

### 1\. **Pre-money vs. post-money valuation impact**

-   **Dilution impact**: The post-money valuation directly impacts founder ownership. With each round, founder shares can get diluted as more equity is issued to new investors.
-   **Investor leverage**: High pre-money valuations give founders more leverage, while lower valuations often favor investors who receive a larger share for their investment.

### 2\. **Key terms and provisions to consider**

-   **Liquidation preferences**: Investors often negotiate liquidation preferences, which ensure they’re first in line to be paid if the company exits, protecting their investment even if the exit valuation is low.
-   **Anti-dilution clauses**: Some investors add provisions to protect against dilution if future rounds are raised at a lower valuation (down rounds). This can mean adjusting their equity stake to prevent dilution.
-   **Participating preferred shares**: Investors with these shares can receive both their investment back and a portion of remaining proceeds, which can impact founder earnings in a sale.

### 3\. **Stages of investment and valuation trends**

-   **Early-stage vs. late-stage valuations**: In early rounds (seed, Series A), valuations are often lower as the company is more speculative. By Series C or D, companies with traction can negotiate higher pre-money valuations.
-   **Market trends influence**: Economic conditions and industry trends can impact valuation levels. For instance, valuations in tech boomed from 2020–2021 due to high demand, but fluctuated post-2022 with market corrections.

### 4\. **Common mistakes when considering valuation**

-   **Ignoring future dilution**: Founders often overlook how future funding rounds will further dilute their ownership.
-   **Overvaluing early**: High initial valuations may seem positive, but can backfire if the company struggles to meet expectations, making it harder to raise future funds at favorable terms.
-   **Not accounting for option pools**: Many companies create stock option pools to attract talent, which can increase dilution but isn’t always factored into initial valuation discussions.

### 5\. **Interesting facts about valuations**

-   **"Unicorn" companies**: A "unicorn" is a privately held startup valued at over $1 billion. These valuations attract top investors and media attention but come with high expectations for growth and profitability.
-   **"Down rounds" and "Up rounds"**: When a company raises funds at a lower valuation than previous rounds, it’s called a down round. This can decrease founder equity and morale. An up round, conversely, raises the valuation and reflects company progress.
-   **The largest post-money valuations**: Companies like Stripe, ByteDance, and SpaceX have set records with post-money valuations in the hundreds of billions, capturing investor interest and positioning them as market leaders.