How do I compare two startup investments?

Put both on the same footing: ownership after dilution, the exit each needs for a 3x return, and what each pays at the same exit valuation. Then weigh that against how likely each company is to reach that exit.

Is a lower valuation always the better deal?

No. A lower valuation buys more ownership, but earlier-stage companies usually face more dilution and a lower chance of a large exit.

Calculator

Deal Comparison

Compare two investment opportunities side by side

Investment Amount

Post-Money Valuation

Stage

Expected Dilution50%

Investment Amount

Post-Money Valuation

Stage

Expected Dilution35%

Exit Scenario

If both companies exit at:

$500M

Side-by-Side Comparison

Metric	Deal A	Deal B	Better
Investment	$25,000	$25,000	-
Initial Ownership	0.313%	0.167%	A
Ownership at Exit	0.156%	0.108%	A
Return at $500M Exit	31.3x	21.7x	A
Required Exit for 3x	$48,000,000	$69,230,769	A
Probability of 3x	~22%	~22%	A
Stage Risk	High	Medium	-

Analysis

Deal A gives you 88% more ownership

Lower valuation means more equity per dollar invested.

Deal A is earlier stage (Seed)

Earlier stage means higher risk but potentially higher returns if successful.

Remember: These numbers only tell part of the story. Team quality, market timing, product-market fit, and your conviction in the founders matter as much as the financial terms. Consider using our AI analysis to evaluate the full investment memo.

Want a deeper comparison?

Analyze both investment memos with AI to compare founder quality, market size, traction, and more.

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How the deal comparison calculator works

This calculator compares two startup investments side by side. For each deal you enter the check size, post-money valuation, stage, and expected dilution, then pick one exit valuation to test both against.

What it compares

For each deal it shows your starting ownership, your ownership at exit after dilution, the exit valuation needed for a 3x return, and the return multiple at the exit valuation you chose.

Return multiple = (ownership at exit x exit valuation) / investment.

Worked example

Deal A: $25,000 at an $8M post-money valuation, seed stage, 50% dilution. You end up with about 0.156%, worth about $781,000 at a $500M exit, or 31x.

Deal B: $25,000 at a $15M post-money valuation, Series A, 35% dilution. You end up with about 0.108%, worth about $542,000 at a $500M exit, or 22x.

The cheaper, earlier deal pays more at the same exit, but an earlier-stage company is less likely to get there. The calculator shows both sides of that trade.

Common questions

How do I compare two startup investments?: Put both on the same footing: ownership after dilution, the exit each needs for a 3x return, and what each pays at the same exit valuation. Then weigh that against how likely each company is to reach that exit.
Is a lower valuation always the better deal?: No. A lower valuation buys more ownership, but earlier-stage companies usually face more dilution and a lower chance of a large exit.