Post-Money Valuation

A Post-Money Valuation is a company’s valuation immediately after a financing round closes, typically calculated as pre-money valuation plus the amount of new capital invested (with nuances depending on whether the option pool is included pre- or post-money). In venture term sheets, Post-Money Valuation determines investor ownership and dilution, and comparing Post-Money Valuation across rounds is common for signaling and performance assessment.

Post-Money Valuation = Investment/Investor Ownership Percentage