The concept of pre-money valuation vs. post-money valuation can be a confusing one at first for many startup founders. Pre-money valuation refers to the valuation of the company prior to the investment whereas post-money valuation refers to the value after an investment has been made.
Most founders, when they think of the concept of valuation are referring to pre-money valuation. But calculating pre-money valuation is not intuitive or straightforward. [Read more…]