Difference between revisions of "Pre-money"
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| − | Pre- | + | A pre-money valuation is a critical term used in private equity or venture capital that refers to the valuation of a company or asset prior to an investment or financing. |
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| + | External investors, such as venture capitalists and angel investors will use a pre-money valuation to determine how much equity to demand in return for their cash injection to an entrepreneur and his or her startup company. This is calculated on a fully diluted basis. | ||
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| + | See also: [[Post-money|Post-money]] | ||
| + | Copied from: http://en.wikipedia.org/wiki/Pre-money_valuation | ||
[[Category:mbi]] | [[Category:mbi]] | ||
Latest revision as of 20:01, 27 August 2020
A pre-money valuation is a critical term used in private equity or venture capital that refers to the valuation of a company or asset prior to an investment or financing.
External investors, such as venture capitalists and angel investors will use a pre-money valuation to determine how much equity to demand in return for their cash injection to an entrepreneur and his or her startup company. This is calculated on a fully diluted basis.
See also: Post-money Copied from: http://en.wikipedia.org/wiki/Pre-money_valuation