Work out pre money and post money valuation instantly with clear inputs, formula shown and shareable results.
Post-money valuation is simply pre-money plus the money invested, and investor ownership is the investment divided by the post-money figure — not the pre-money one. Price per share comes from the pre-money valuation divided by existing shares, which is what sets the number of new shares issued.
Post-money
Post-money = Pre-money + Investment
Investor ownership
Ownership % = Investment / Post-money x 100
Price per share
Price = Pre-money / Existing shares
Because the new shares exist in the post-money cap table. Using pre-money overstates the investor's stake — a classic term sheet error.
Almost always before, inside the pre-money valuation. That makes the pool dilutive to founders, not to the incoming investor.