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  • Answer Upon - Pre-Money vs. Post-Money Valuation

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    needs $500,000 to get started and/or grow, how much of the equity in that company should $500,000 command? Once this question is answered, the company will go out and try to find investors. When doing so, a key question ofte
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    y will go out and try to find investors. When doing so, a key question often arises as to whether the valuation is “pre-money” or “post-money.”

    “Before the money" or “pre-money” and "after the money" or “post-money” denote simple concepts. However, these simple concepts can even confuse even the most sophisticated analysts at times. If a company is valued at $1 milli

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