Post-Money Valuation

Definition

Post-money valuation is the company’s value immediately after new investment: pre-money valuation plus the money raised.

How it comes up in fundraising

Ownership math runs on post-money: $2M invested at $10M post-money buys exactly 20 percent.

Frequently asked questions

What is the difference between pre-money and post-money?

Pre-money is the price before new capital; post-money includes it. The same “$10M valuation” differs meaningfully depending on which is meant, so always specify.

Why did SAFEs move to post-money caps?

Post-money caps make each investor’s ownership at conversion predictable, shifting the dilution of additional SAFEs onto founders.

Round Funded resources

Cite this term

Round Funded. "Post-Money Valuation." Startup Fundraising Glossary.

Stable URL, it will not change: https://www.roundfunded.com/en/glossary/post-money-valuation

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