Post-Money Valuation
Private Equity glossary · Private Equity Fundamentals
Definition
Company valuation after a financing round (pre-money + new investment).
Post-Money Valuation in plain English
When a startup raises money, investors give it cash in exchange for a slice of ownership — and to figure out how big a slice, everyone first agrees on what the whole company is worth. Post-money valuation is that worth measured right AFTER the new money lands: it's the value the company had before the round (called pre-money) plus the fresh cash just invested. So if a company was judged to be worth $8 million and an investor puts in $2 million, the post-money valuation is $10 million. It matters because the investor's ownership percentage is their check divided by that post-money number — here, $2 million of $10 million, or 20% of the company.
Learn these first
Practice Post-Money Valuation
Related Private Equity terms
Private Equity practice questions · Private Equity flashcards · Private Equity study guide