Pre-Money Valuation
Definition
The valuation of a company immediately before a new funding round. Pre-money valuation is negotiated between the company and investors and, combined with the amount raised, determines how much equity is issued to new shareholders.
Related Terms
Related FAQ
Post-money valuation is the implied total value of a company after a funding round closes — it equals pre-money valuation plus the investment amount.
Read full answer →Pre-money valuation is the implied value of a company before new investment. It determines how much equity an investor receives for their cheque.
Read full answer →What is the Berkus Method for startup valuation?
The Berkus Method values pre-revenue startups by assigning values (typically up to £500K each) to five key milestones: sound idea, prototype, quality team, strategic relationships, and product rollout.
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