Pre-money
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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
