CAP TABLE / PRE-MONEY VS. POST-MONEY VALUATION CALCULATOR.
This calculator shows how to convert between pre-money and post-money valuation, calculate the implied share price and new shares, and prepare a simple cap table before and after a priced equity round. You can change any of the values below, and this will auto-update all results.
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A capitalization table, commonly called a cap table, shows how a company's equity is distributed among founders, employees, investors and other shareholders. The pre-money valuation is the value assigned to the company immediately before new investment. The post-money valuation is the pre-money valuation plus the new investment. When a post-money valuation is provided, the pre-money valuation is calculated by subtracting the new investment.
New investor ownership is calculated by dividing the investment by the post-money valuation. The implied share price is calculated by dividing the pre-money valuation by the existing fully diluted shares. The number of new shares is calculated by dividing the investment by the implied share price. Existing holders retain their shares, but their ownership percentages decrease because the total number of shares increases.
a pre-money valuation example
Let's assume a startup has a pre-money valuation of £4,000,000, receives £1,000,000 in new investment and has 1,000,000 existing fully diluted shares. Before the round, founders own 80%, the option pool represents 15% and other holders own 5%. This means that
- the post-money valuation is £4,000,000 + £1,000,000 = £5,000,000
- new investor ownership is £1,000,000 / £5,000,000 = 20%
- the implied share price is £4,000,000 / 1,000,000 = £4 per share
- the company issues £1,000,000 / £4 = 250,000 new shares, creating 1,250,000 post-money fully diluted shares
- founders own 64%, the option pool represents 12%, other holders own 4% and the new investor owns 20% after the round
cap table / pre-money vs. post-money valuation calculator
To use the calculator, select whether the valuation entered is pre-money or post-money, then enter the currency, valuation, investment, existing fully diluted shares and pre-money ownership percentages. The pre-money ownership percentages must add up to 100%.
FREQUENTLY ASKED QUESTIONS.
- What is a pre-money valuation?
Pre-money valuation is the value assigned to a company immediately before new investment is added.
- What is a post-money valuation?
Post-money valuation is the pre-money valuation plus the new investment. It represents the company's implied value immediately after the financing.
- How is new investor ownership calculated?
New investor ownership is the investment divided by the post-money valuation. A £1 million investment at a £5 million post-money valuation represents 20% ownership.
- Why are existing shareholders diluted?
Existing shareholders retain the same shares, but new shares increase the company's total shares. Their ownership percentages therefore decrease proportionally.
- What does this simplified cap table exclude?
It excludes multiple share classes, SAFEs, convertible notes, warrants, liquidation preferences, option-pool top-ups, anti-dilution provisions, transaction fees and taxes.
This calculator directly complements our Equity Dilution Calculator, which focuses on the change in an individual shareholder's ownership.
CREDITS & REFERENCES
- U.S. Securities and Exchange Commission comment file: Pre-money, investment and post-money valuation relationship
- Other tools: Equity Dilution Calculator, Margin Calculator, Markup Calculator, Margin and Markup Calculator, Percentage Change Calculator, Sales Revenue Target Calculator, Burn Rate & Runway Calculator, Customer Acquisition Cost (CAC) & LTV Calculator, Break-Even Analysis Calculator, Metaverse Startup Ideas and Metaverse Business Opportunities
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