Pre-Money Valuation . . .
refers to the value of a company before an investor’s
money is invested. It is usually contrasted with post-money valuation
that combines a company’s pre-money valuation with the value of the
money invested. For example, a company with a pre-money valuation of
$10 million that receives $5 million in investment would have a
post-money valuation of $15 million consisting of the $10 million
pre-money value of the company plus the $5 million invested. See:
Discounted Cash Flow,
Fully Diluted,
Post-Money Valuation,
Pricing,
Valuation.
