What is Valuation in Equity Crowdfunding (Reg CF & Reg A)?
SEC-verified coverage: 6,200+ startups • Updated Aug 2025
Valuation answers: “How much is this startup worth right now?”
In equity crowdfunding, valuation and your investment amount determine your stake.
In equity crowdfunding, valuation and your investment amount determine your stake.
Example: If valuation is $10,000,000 and you invest $1,000, your stake is roughly $1,000 ÷ $10,000,000 = 0.01%.
Why does valuation matter?
- It sets your ownership of the company.
- Lower valuation = more upside if they grow.
- Fair valuation = less risk of overpaying.
Example: quick check
If a startup is worth $10M and raises $1M, new investors together get 10% of the company.
$1,000 would buy 0.01%.
$1,000 would buy 0.01%.
Valuation Examples (Reg CF / Reg A)
See how different valuations affect your ownership:
Low Valuation
Valuation: $10MRaise: $1M
Investors own: 10%
$1,000 = 0.01% of the company
$1,000 = 0.01% of the company
High Valuation
Valuation: $40MRaise: $1M
Investors own: 2.5%
$1,000 = 0.0025% of the company
$1,000 = 0.0025% of the company
Ownership Calculator
Enter your numbers — we do the math.
Company valuation (post-money)
$
Formatted: $10,000,000
Your investment
$
Formatted: $1,000
Platform/processing fees (%)
Effective invested: $1,000
Estimated Ownership
0.01%
Valuation Used
$10,000,000
Effective Invested
$1,000
Estimates only — actual terms may vary. This tool is not investment advice.
Companies want high valuations, but smart investors want a fair deal.
Smart equity crowdfunding investors always check valuation and fees before investing.
Disclaimer: Investing in startups is risky, and you could lose all your money.
The examples above are for illustration only, not a guarantee.
This is not investment advice. Always read the company’s full documents before investing.
The examples above are for illustration only, not a guarantee.
This is not investment advice. Always read the company’s full documents before investing.
See Real Startup Valuations