A companys valuation right before its latest round of financing.
Value of the company before a VC invests capital. If, for example, a VC invests $2 million in a company and subsequently owns 25 percent of the company, then the pre-money value must have been $6 million. ( 2/X = .25. X thus equals 8, and since we know the VC firm added $2 million of value, the company must have been worth $8 – $2 = $6 million "pre-money.")
The value of a privately held company prior to the most recent round of financing (see paragraph 2, Section IV above).
The valuation of a company immediately before inve... Add a comment
the valuation of a company prior to the current round of financing. For example, a venture capitalist may invest $5 million in a company valued at $2 million pre-money. As a result, the startup will have a "post-money" valuation of $7 million.
The valuation of a company prior to a round of investment. This amount is determined by using various calculation models, such as discounted P/E ratios multiplied by periodic earnings or a multiple times a future cash flow discounted to a present cash value and a comparative analysis to comparable public and private companies.
The pre-investment valuation of the company, obtained by subtracting the amount of the investment from the quotient of the amount of the investment divide by the percentage ownership that such investment expects to purchase.
Valuation of a company agreed-upon by the existing owners and the new investors, immediately prior to a new round of investment.
A pre-money valuation is a term used in private equity or venture capital that refers to the valuation of a company or asset prior to an investment or financing.