What is the difference between “Pre-money” and “Post-money” valuation?

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  • Pre-money valuation: The value of the company agreed upon between founders and investors before the new capital injection from the investment round is formalised and introduced.
  • Post-money valuation: The value of the company immediately after the round is closed. It is calculated by adding the invested capital to the pre-money valuation.

Post-money valuation = Pre-money valuation + Invested Capital

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