Startup Investing
Pre-Money Valuation
Definition
What is Pre-Money Valuation?
A company's agreed value immediately before a new investmentAn asset or commitment of money made with the expectation of future income, growth, or both..
Example in practice
How This Looks in Practice
A ₦400 million pre-money valuation plus ₦100 million investment gives ₦500 million post-money value.
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Related Terms
Startup Investing
Term Sheet
A preliminary document outlining the main commercial terms of a proposed investment.
Startup InvestingPost-Money Valuation
A company's value immediately after adding new investment capital.
Startup InvestingValuation Cap
The maximum valuation used to convert a SAFE or convertible instrument into equity.
Startup MetricsBurn Rate
The rate at which a company spends cash, commonly measured monthly.