Pre-Money Valuation

Definitions

1. The value of a company immediately before new investment capital is added in a financing round. It is the starting point for calculating post-money valuation and dilution.

   In plain English: The company's valuation before the new investment is added.

   Example: "The founders negotiated hard on the pre-money valuation because every point affected dilution."

Related Terms

• Down Round
• Dilution
• Equity Dilution
• Equity Financing
• Flat Round
• Future Valuation
• Post-Money Valuation
• Up Round