Valuation Beginner

Post-Money Valuation

What a company is worth immediately after receiving new investment (pre-money + new capital).

Definition

Post-money valuation is the company's value right after a funding round closes, calculated as pre-money valuation plus the new capital raised. It is the number most commonly cited in press releases and headlines. Post-money valuation determines the price per share and is the baseline for calculating everyone's ownership percentage after the round.

Why it matters

Your ownership percentage after a round is calculated against the post-money valuation. To estimate what your shares are worth on paper, multiply your share count by the price per share implied by the post-money valuation.

Example

A company raises $15M on a $45M pre-money valuation. Post-money is $60M. If there are 10M fully diluted shares, each share is worth $6. Your 50,000 options are worth $300K on paper (minus strike price).

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This definition is an educational summary. It is not legal, tax, or investment advice. Specific terms in your equity grant or company documents may differ.