Valuation

Also called: pre-money valuation, post-money valuation, pre-money, post-money, premoney, postmoney, company valuation

What the company is agreed to be worth for the purpose of an investment. Pre-money is the value before the new money goes in. Post-money is the value right after: pre-money plus the new money.

For example: An investor puts 1 million dollars into a company at a 4 million dollar pre-money valuation. Post-money is 5 million dollars, and the investor owns one fifth of the company.

Connects to 9

Equity Concept
Dilution Concept
Term sheet Concept
Series A Concept
Valuation cap Concept
Exit Concept
Priced round Concept
409A valuation Concept
EBITDA Concept

This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.