While raising an early stage round, startup valuation is one of the key areas that entrepreneurs have to keep in mind. It is essential not to dilute too much of the company very early, while keeping in mind that early stage investors should be fairly rewarded for their high risk bets.
Pre-Money Valuation:
The valuation of the startup before new investment is added. It reflects the company’s current value based on existing achievements, assets, and projections.
Post-Money Valuation:
The valuation of the startup after the new investment has been added.
Use this Pre-Money and Post-Money Valuation calculator for startup to understand how the company will be valued on the basis of the investment amount and the equity dilution. Use this simple startup valuation calculator to understand how your round is shaping up.