Pre-Money vs Post-Money: What Founders Get Wrong

Pre-Money vs Post-Money: What Founders Get Wrong

Valuation: Pre-Money vs. Post-Money Understanding your startup’s valuation is essential when engaging with investors. The terms “pre-money” and “post-money” valuation are fundamental to any term sheet and they directly impact your ownership stake. This guide aims to simplify these concepts, offer clear explanations, practical examples, and provide advice for founders. Definition Valuation refers to the…