Pre-Money Valuation Calculator

Calculate Pre-Money Valuation



Formula

To calculate the pre-money valuation:

\[ PreMV = \left( \frac{I}{\frac{E}{100}} \right) - I \]

Where:

What is Pre-Money Valuation?

A pre-money valuation is defined as the value of a company, not including any of the latest rounds of funding. In other words, it is the worth of the company before it receives investments or funding. This valuation is crucial for investors and companies to understand the company's value before new investments are made.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ PreMV = \left( \frac{1,000,000}{\frac{20}{100}} \right) - 1,000,000 = 4,000,000 \, \text{\$} \]

The Pre-Money Valuation is $4,000,000.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ PreMV = \left( \frac{500,000}{\frac{10}{100}} \right) - 500,000 = 4,500,000 \, \text{\$} \]

The Pre-Money Valuation is $4,500,000.