Glossary
Pre-money and post-money valuation
A company’s value immediately before and immediately after new investment in a funding round.
Post-money valuation equals pre-money plus the new money raised. The new investor’s stake is the investment divided by the post-money figure: $10m into a $40m pre-money buys 20% of a $50m post-money company.
Headline valuations can mislead. An option pool top-up agreed in the round, liquidation preferences and other terms change what each share is worth in practice.
In Hebrides
The Valuation Suite tests a round’s pre-money against a range built from several methods, with the confidence in that range stated.
Valuation Suite