Post-Money Valuation
The value of your company immediately after a funding round closes — the pre-round value plus the new money raised.
Quick Answer
How is post-money valuation different from pre-money valuation?
Pre-money is the company's value before new investment; post-money simply adds the new capital raised on top of that. The same check size against a lower pre-money valuation always produces more dilution, not less.
- Post-money always equals pre-money plus the new investment
- A lower pre-money for the same check means more dilution
- Confirm which figure a term sheet is actually quoting
The Lovie Advantage
Lovie models both pre- and post-money scenarios side by side before you sign anything, not after.
See how this connects to Pre-Money Valuation. For the formal definition, see Investor.gov's glossary entry on initial public offerings (IPOs).
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