VC Method Valuation Calculator
The VC method starts from the exit. It asks what the company will be worth, what return the investor needs, and how much their stake will be diluted before exit.
Your numbers
- Post-money (dilution-adjusted)
- $8.54M
- Terminal value
- $150M
- Required multiple (MOIC)
- 10.54×
- Ownership needed at exit
- 14.1%
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Get matched with Fund Force →The formula, in plain English
- Terminal value = Exit metric × Exit multiple
- Post-money today = Terminal value ÷ (1 + Target IRR)^Years
- Ownership needed = Investment ÷ Post-money
- Adjusted for future dilution = Ownership needed ÷ Retention ratio
Frequently asked questions
What target IRR do VCs use?
Seed and Series A investors commonly use 40–60% because most of their investments fail; growth-stage investors use 25–35%.
What is the retention ratio?
The share of today's ownership an investor expects to keep after future rounds dilute them. Two more rounds at 20% each gives 0.8 × 0.8 = 64%.
Is the VC method accurate?
It is a negotiation tool, not a precise value. It is only as good as the exit estimate, so pair it with comparable deals.
Results are estimates for planning and education — not financial, legal or tax advice.