Derive pre-money valuation from the post-money figure and the amount being invested.
The investor buys their stake out of the post-money value, not the pre-money one, so ownership is investment divided by post-money. Quoting a valuation without saying which side of the round it refers to changes the ownership outcome materially. On a 2 million investment, confusing pre- and post-money at a 10 million headline shifts investor ownership between 16.7% and 20% — a difference founders feel at exit.
Pre-Money Valuation
Pre-money = post-money − investment; investor ownership = investment ÷ post-money
Pre-money = post-money − investment; investor ownership = investment ÷ post-money The investor buys their stake out of the post-money value, not the pre-money one, so ownership is investment divided by post-money. Quoting a valuation without saying which side of the round it refers to changes the ownership outcome materially.
On a 2 million investment, confusing pre- and post-money at a 10 million headline shifts investor ownership between 16.7% and 20% — a difference founders feel at exit.
This calculator takes 2 inputs: Post-money valuation, Amount invested. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.