Calculate pre-money, post-money, and equity share for fundraising.
Professional Fundraising & Equity Estimation (INR)
Step-by-Step Calculation:
Understanding the difference between pre-money and post-money valuation is crucial for every founder during fundraising.
Pre-Money Valuation: The value of your startup before you receive any investment. It represents the agreed-upon worth of the company’s intellectual property, team, and traction.
Post-Money Valuation: The value of your company after the investment is added.
Our calculator uses the standard venture capital formula:
Post-Money Valuation = $Investment\ Amount / Equity\ \%$
Pre-Money Valuation = $Post\text{-}Money\ Valuation – Investment\ Amount$
Example: If an investor puts in ₹50 Lakhs for 10% equity, your Post-money valuation is ₹5 Crores, and your Pre-money valuation is ₹4.5 Crores.
For Indian startups navigating seed rounds or Series A, proper valuation helps in:
Avoiding Over-dilution: Knowing exactly how much of your company you are giving away.
Better Negotiations: Carrying data-backed numbers to pitch meetings with VCs and Angel Investors.
Tax Compliance: Important for calculations related to Angel Tax and fair market value (FMV).