Definitions for "pre-money valuation"
Keywords:  valuation, venture, inve, prior, round
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).