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Post-Money

Private Credit glossary · Portfolio Management, Monitoring & Workouts

Definition

Valuation of a company immediately after receiving new investment.

Post-Money in plain English

Post-money is simply what a company is judged to be worth right after it takes in a fresh round of investment — counting the new cash that just landed in its bank account. If investors agree a startup is worth $8 million and then put in $2 million, the post-money value is $10 million (the $8 million "pre-money" plus the new $2 million). It matters because it sets how big a slice the new investors own: their $2 million buys 20% of a $10 million company. It's the natural bookend to "pre-money," which is the value agreed on just before the money arrives.

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