The Post-Money Valuation Calculator calculates the total equity value of a startup immediately after new financing capital is added to its balance sheet. It is the definitive figure used to establish equity capitalization tables and investor ownership percentages.
Mathematical Formula
Post-Money Valuation = Pre-Money Valuation + Investment Amount
Cap Table Mechanics
If a company raises $2M on a $6M Pre-Money valuation, its Post-Money valuation is $6M + $2M = $8M. The incoming investors own $2M / $8M = 25% of the company, and existing shareholders retain 75%.
Frequently Asked Questions (FAQ)
How is investor equity ownership computed from Post-Money?
Investor Ownership (%) = Investment Capital / Post-Money Valuation.
How do Y Combinator Post-Money SAFEs work?
A Post-Money SAFE locks in a fixed ownership percentage for early investors based on the stated valuation cap before any priced equity round.