Pre-money / post-money
Negotiated equity valuations immediately before and after a financing. In a simple primary priced round, post-money equity valuation equals pre-money equity valuation plus new investment; enterprise value is a different measure.
Also called Post-money valuation
Pre-money / post-money in round numbers
Hypothetical US$ millions: a primary equity round has an 80 pre-money valuation and 20 of new investment, giving a 100 post-money valuation. Assume no fees, secondary sales, convertible instruments, option-pool changes or other dilution. The new investor’s post-round share is 20 ÷ 100 = 20%. This is a negotiated valuation, not guaranteed market worth.
Scroll horizontally to read all columns.
| Measure | Amount |
|---|---|
| Pre-money equity valuation | 80 |
| New primary investment | 20 |
| Post-money equity valuation | 80 + 20 = 100 |
| New investor post-round ownership | 20 ÷ 100 = 20% |
Terms Related to Pre-money / post-money
Dilution · Cap table · Down round · Rollover equity · All of the glossary