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Also known as: post-money, post-money val

Post-Money Valuation

ConceptualFundraisingFinance

Definition

Post-Money Valuation: Post-money valuation is the value of a company immediately after receiving new investment. It equals the pre-money valuation plus the investment amount. Investor ownership percentage is calculated as investment divided by post-money valuation.

Example Usage

“The $8M post-money valuation after their $2M seed means the company was valued at $6M pre-money.”

Common Misconceptions

Post-money is the company's actual value. It reflects the price of the last transaction, not intrinsic value.
Post-money stays constant. It changes with each new funding round or equity event.
High post-money is always good. It creates pressure to grow into that valuation.

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