Valuation Calculator Shark Tank

Shark Tank Valuation Calculator

Calculate your business worth based on the equity stake offered.

Your Results

Post-Money Valuation
$0
Pre-Money Valuation
$0

Understanding Shark Tank Valuation Logic

When an entrepreneur steps into the Tank, the first thing they say is: "I'm asking for [Amount] in exchange for [Equity]% of my company." This specific combination of numbers defines the valuation of the business at that moment.

How the Calculation Works

The "Post-Money Valuation" represents what the company is worth including the new investment. It is calculated by dividing the amount asked by the percentage of equity offered. For example, if you ask for $100,000 for 10% equity, the math is:

$100,000 / 0.10 = $1,000,000 Post-Money Valuation

Pre-Money vs. Post-Money

  • Post-Money Valuation: The value of the company after the investment cash is added to the balance sheet.
  • Pre-Money Valuation: The value of the company before the investment. To find this, subtract the investment amount from the post-money valuation.

Why Equity Matters

Sharks often counter-offer by asking for more equity for the same amount of money. If a Shark asks for 20% instead of 10% for that same $100,000, they are effectively cutting your company's valuation in half (from $1M to $500,000). Use this calculator to see how different equity stakes impact the perceived value of your hard work.

function calculateSharkValuation() { var amount = document.getElementById('amountAsked').value; var equity = document.getElementById('equityOffered').value; var resultDiv = document.getElementById('sharkResults'); var postMoneyDisplay = document.getElementById('postMoneyVal'); var preMoneyDisplay = document.getElementById('preMoneyVal'); // Parse values to floats var amountVal = parseFloat(amount); var equityVal = parseFloat(equity); // Basic Validation if (isNaN(amountVal) || isNaN(equityVal) || amountVal <= 0 || equityVal 100) { alert("Please enter a valid amount and an equity percentage between 0.1 and 100."); return; } // Calculation logic // Formula: Valuation = Investment / (Equity / 100) var postMoneyValuation = amountVal / (equityVal / 100); var preMoneyValuation = postMoneyValuation – amountVal; // Formatting currency var formatter = new Intl.NumberFormat('en-US', { style: 'currency', currency: 'USD', maximumFractionDigits: 0 }); // Display results postMoneyDisplay.innerHTML = formatter.format(postMoneyValuation); preMoneyDisplay.innerHTML = formatter.format(preMoneyValuation); resultDiv.style.display = 'block'; // Smooth scroll to results resultDiv.scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }

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