Terminology 101

Valuation:
Investopedia defines valuation as the process of determining the current worth of an asset or company.

Post-Money Valuation:
The pre-money valuation is the value put on the company before raising capital.

Post-Money Valuation:
The value of the company after it has raised capital. For eg.If Company X raised $1 million at a pre-money valuation of $3 million.It’s post-money valuation would be $ 4 million (3+1).

 

 

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