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Round Size and Valuation Calculator
The following resource helps you calculate the exact amount your should be raising and your target valuation.
Most founders don’t know how much to raise or how to value their company.
This can lead to costly mistakes like:
Overpricing your round - meaning you lose deals you might otherwise have closed at the right valuation.
Underpricing your round - losing money because you give away more of your company than you needed to.
Raising within a range - Saying you need $500k-$2M looks bad to investors. It seems like you don’t understand the business, what it needs and what you are trying to achieve.
Underraising - You don’t raise enough to hit the next major milestone required to raise another round.
The following is a calculator to help you determine how much to raise and at what valuation. It is based on a simple formula:
Determine the milestone you need to reach with the funds from this round.
Determine the cost required to hit that milestone.
Price the round (get your valuation) based on target dilution)