Pre-Money Valuation
A Pre-Money Valuation is the startup company’s value immediately before a round of financing. A pre-money valuation is used to determine how much equity an investor is seeking in return for his or her investment.
Pre-Money Valuation = Post-Money Valuation – Investment
About the Author
Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. Click here to learn more about his practice.
