Post-Money Valuation

What is Post-Money Valuation?

Post-money valuation refers to the value of a startup after it has received external funding or investment. It is calculated by adding the investment amount to the pre-money valuation. Post-money valuation is used to determine the ownership percentage for new investors and assess the company’s market value after the investment round.

How to Calculate Post-Money Valuation

• Pre-Money Valuation: The value of the company before the investment.
• Investment Amount: The amount of money raised in the funding round.
• Formula: Post-Money Valuation = Pre-Money Valuation + Investment Amount.

Related Terms and Concepts

Pre-money valuation, equity, dilution, funding round