Post-money valuation

How it is used

New investors' ownership is calculated from it: 2 million invested at a 10 million post-money valuation buys 20 percent. Often shortened to post. Many SAFEs today use a post-money valuation cap.

Example sentences

1. We raised 3 million at a 15 million post-money valuation, so the new investors own 20 percent.

2. Check whether the new option pool is counted in the pre-money or the post-money valuation.

Common collocations

• post-money valuation cap
• at a post-money valuation of
• post-money ownership

Related terms

• pre-money valuationThe value of a company just before new investment money comes in. It is used to work out the price per share in a funding round.
• valuationThe estimated value of a company, agreed between founders and investors in a funding round, which decides how much ownership investors get for their money.
• SAFESimple agreement for future equity: a contract in which an investor gives money now and receives shares later, usually at the next priced funding round.
• dilutionThe fall in an existing owner's percentage of a company when new shares are issued, for example to new investors or for an employee option pool.

More terms: Equity & Valuation

• equity
• stake
• cap table
• vesting
• stock option
• down round
• liquidation preference
• sweat equity
• option pool