What is Pre-Money/Post-Money Valuation?

The valuation represents how much a company is worth, expressed as either Pre-Money or Post-Money Valuation.

• Pre-Money valuation refers to the value of the company excluding funding — how much a startup is worth before receiving investments.

• Post-Money valuation refers to how much the company is worth after receiving investments.

Example: A company receiving a $1M investment at a $5M valuation is worth $5M pre-money or $6M post-money.