Venture Valuation Tool

The Venture Valuation Tool models one investor's returns through one investment. Not a whole fund. For fund-level math, use the Venture Capital Model or Fund Economics Tool.

It's dual-mode. Pick one sheet, not both. Venture Valuation is the full round-chain across Seed through Series F+, with graduation rates, waterfall, and expected value. Simple Venture Valuation is a single-page breakpoint evaluator for one specific investment.

Both assume 1x non-participating preferred, latest-round-senior seniority, and require iterative calculations enabled (the full sheet's option-pool formula at R56 is circular).

Venture Valuation (full sheet)

Columns D through J are the 7 round stages. Column C is "Before Seed"; column K is totals or Exit.

Cap table inputs: SAFEs and notes (R9-R32)

Two parallel blocks: the modeled Investor (R10-R20) and All Other Preferred (R22-R32). Each has a pre-money convertibles sub-block and a post-money SAFE sub-block. Edit amount, discount, and cap; share price and shares are formulas. Default is investor-friendly conversion (min of equity, cap, and discount price). Override R14/R19 for other methods.

New equity, per round (R34-R49)

Premoney valuation sits at R40. Only D40 is raw ($8M default); E40-J40 chain multipliers of 3x, 3x, 3x, 2x, 1.75x, and 1.5x. Overwrite each cell for explicit future valuations. Total investment round at R38 is formula-driven from premoney with a 20%/80% split; overwrite to set a specific round size. Option pool % per round (R39) runs 20% at Seed, tapering to 5%. Investor's new equity (R36) is 0 at most rounds; E36 is seeded for pro-rata at Series A.

Proforma cap table (R51-R57), graduation rates (R59-R68), waterfall (R70-R134)

Seed R52-R55 on column C for a non-empty starting cap table. R56 is the circular option-pool formula requiring iterative calcs.

Set fail % (R63) and exit % (R64) per round; graduation and compound probabilities are formulas. Default: ~70% eventually fail, ~30% eventually exit.

The waterfall runs per exit stage. Edit R72 (exit price as multiple of last postmoney) or type raw dollar exits on R73. Limitation: no participating preferred, no caps, no anti-dilution. For any of those, use the Cap Table & Exit Waterfall instead.

Investor returns (R136-R162)

K156-K162 is the money number. Expected value per $1 invested, per entry round. Default shows ~3.08x for Seed entry, declining to ~1.25x at Series F+.

Simple Venture Valuation

A deliberate shortcut. One investment, five exit-price breakpoints (D-H), one probability row. No round-by-round cap table.

Inputs run top to bottom. R8-R15 sets pre-existing preferences, round size, and premoney. R18-R22 covers follow-on size, plus two shortcut inputs for cumulative dilution from other investors (R21) and from option pools (R22). R26 is exit prices, auto-built from the preference stack; override any cell. R36 is probability per breakpoint, where H36 forces the row to 100%.

Outputs are total proceeds, gross multiple, expected gross multiple, and XIRR.

How to edit with AI

Open the workbook in Claude for Excel or connect the Hemrock MCP server at mcp.hemrock.com. See the prompt guide; append the venture_valuation template primer to the universal primer. Starter asks: "add participating preferred with a 2x cap," "add an eighth round stage," "swap the exit-multiplier chain for explicit dollar valuations."