How do I work out what my startup shares are worth?

Start from a reference price per share — usually the price paid in the last funding round, or a 409A / latest company valuation — and multiply by how many shares you hold to get a rough paper value. Then apply a discount for a private, minority, all-cash sale to reach a realistic figure. If you hold options rather than shares, subtract the cost to exercise them.

Are my shares worth the last funding round price?

Not exactly. The last-round price is normally for preferred shares, which carry protections that ordinary common shares and options do not, so common shares are worth somewhat less. Dilution from later rounds and, for options, the exercise cost also affect what your holding is really worth.

How can I estimate my startup equity value for free?

You can estimate it yourself with your reference price per share and your share count, then apply a discount for a private sale. A free estimator can do this instantly — enter your reference price, your share or option count, and whether the options are exercised, and it returns a realistic range.

Is startup equity actually worth anything before an exit?

It has real value, but it is paper value, not cash, until there is an exit or a sale of your shares. People often call it 'monopoly money' because you cannot spend it and the eventual amount is uncertain. The way to turn some of it into cash early is a secondary sale — selling part of your shares to an investor before the exit — usually at a discount to the headline valuation.

Valuing your shares

How much are my startup shares worth?

There's no live share price for a private company — but you can get to a realistic figure with two numbers you already have. Here's how, and where people go wrong.

If you hold shares or options in a private startup, "what are they worth?" has no official answer the way a listed stock does. There's no market ticking away. But you're not in the dark either — a sensible estimate comes from two things: a reference price per share and how many shares you hold.

Step 1 — find a reference price per share

The usual reference is your company's last funding round — the price per share investors paid. You'll find it on your term sheet, your share or option agreement, or the cap table. If there's been no recent round, a 409A valuation (or your country's equivalent) or the latest company valuation is the next-best anchor.

One catch: the last-round price is usually for preferred shares. If you hold ordinary common shares or options, yours are worth somewhat less than that headline price, because preferred carries protections common doesn't.

Step 2 — multiply by what you hold

Reference price per share × your number of shares = a rough paper value. If you hold options rather than shares, remember you'd first pay the exercise price to own the shares — so your net position is the paper value minus the cost to exercise (and any tax).

Step 3 — adjust to a realistic sale price

Paper value isn't what a buyer pays today. A private, minority, all-cash sale happens at a discount to that headline number — for illiquidity, for selling common rather than preferred, and for the buyer's information risk. So your realistic sale figure is the paper value, minus that discount.

How big a discount is its own question — we cover it in what discount is fair when you sell startup shares?

Where people go wrong

Using the headline valuation for common shares. Your common shares or options are worth less than the preferred price.
Forgetting dilution. Later funding rounds issue new shares, so your percentage — and sometimes your per-share value — can change.
Ignoring the exercise cost. Options aren't free to turn into shares; net value is what matters.
Confusing paper value with cash. The number on the cap table is not what lands in your account after a discounted, taxed sale.

Get your figure in ten seconds

Rather than do the arithmetic by hand, put in your reference price, your share or option count, and whether they're exercised. Our free estimator returns a realistic range instantly.

Try the free estimator →

Want to turn an estimate into an actual number a buyer will pay — and set a floor you won't go below? That's inside the Equity Toolkit (€29).

How much are my startup shares worth?

Step 1 — find a reference price per share

Step 2 — multiply by what you hold

Step 3 — adjust to a realistic sale price

Where people go wrong

Get your figure in ten seconds

Read next

Free: the Equity Starter Kit

Further reading