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The deal
Post-money valuation = investment divided by the equity share. Pre-money = post-money minus the investment.
What it means
Post-money valuation
Rs 10 Cr
Pre-money valuation
Rs 9.5 Cr
Founders keep
95%
Rs 50 Lakh for 5% values the company at Rs 10 Cr after the money comes in, and Rs 9.5 Cr before it. The founders keep 95%.
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How to read a Shark Tank deal
- Step 1: Divide the investment by the equity
Rs 1 crore for 5% means 5% of the company is worth Rs 1 crore, so all of it is worth Rs 20 crore. That is the post-money valuation: what the company is worth once the money is in.
- Step 2: Subtract the investment for pre-money
Take the cheque back out and you get what the company was worth before the deal. Rs 20 crore post-money less Rs 1 crore invested is Rs 19 crore pre-money.
- Step 3: Compare the counter the same way
If a Shark offers the same Rs 1 crore for 10%, the company is now valued at Rs 10 crore. The money did not change; the valuation halved. That gap is what the negotiation is really about.
- Step 4: Sanity-check against revenue
Divide the valuation by annual revenue. It is a rough check, not a verdict, but it is usually the first question the Sharks ask and the reason a high ask gets pushed down.
WHY THIS ONE
Built for how deals are actually said on the show
Four things a generic equity calculator does not do.
The right formula
Investment divided by equity is the POST-money valuation. A common mistake treats it as pre-money and adds the cheque again, which inflates every result by the size of the ask. This tool does not.
Lakh and crore, as spoken
Enter "50" and pick Lakh rather than typing a row of zeros. Results come back in crore and lakh too, the way the numbers are read out on air.
Ask against counter, side by side
See the valuation at the founder's ask and at the Shark's counter, how far it fell, and how much more equity changed hands.
The reverse question
Know the amount you need and the valuation you want? It tells you the share of the company that means giving away, before you walk into the room.
Shark Tank valuation, answered
The questions people search after watching a pitch.
It means the investor pays Rs 1 crore for 5% of the company, which values the whole company at Rs 20 crore after the investment. Before the money arrives it is worth Rs 19 crore, and the founders keep 95%.
Divide the investment by the equity percentage. Rs 50 lakh for 5% gives Rs 50 lakh divided by 0.05, a Rs 10 crore valuation. That figure is post-money; subtract the investment to get the pre-money valuation.
Pre-money is what the company is worth before the investment. Post-money is pre-money plus the investment. The number you get from an ask on the show is post-money.
Equity is the share of ownership the founder gives the investor in return for the money. Giving 10% equity means the investor owns a tenth of the company and its future value.
Asking for more equity for the same money lowers the valuation. It is how an investor says the business is worth less than the founder claims, most often because revenue or margins do not yet support the ask.
There is no single right number. Traditional businesses often sit around 1 to 2 times revenue and high-growth brands higher, but margin, growth and category matter more than any rule of thumb. Treat the multiple as a question to answer, not a verdict.
Preparing to raise?
An ask holds up when the growth numbers behind it do. If your revenue, margins and acquisition costs need to tell a clearer story before you pitch, we can help you get them there.