# Simon Willison’s Weblog

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## If a startup has raised 10M, how much is it worth?

21st November 2013

My answer to If a startup has raised 10M, how much is it worth? on Quora

That depends on how much equity they sold for that \$10 million.

If they sold a 20% stake in their company for \$10 million, their company’s post-money valuation is \$60 million.

Why \$60m? Because they sold 20% of the company for \$10m, indicating that 100% of the company is worth \$50m (this is called their pre-money valuation). BUT... they also get to add that \$10m in cash they just raised to their balance sheet, so the total valuation of the company (the post-money valuation) is \$60m.

Often when a company raises money they will announce the amount raised but NOT the new valuation—this is particularly common with early-stage startups. You can’t figure out the valuation from the amount they raised on its own.

This is If a startup has raised 10M, how much is it worth? by Simon Willison, posted on 21st November 2013.