Q&A

Question: What is a post-money valuation?

A company’s post-money valuation is the value of the company immediately after an investment.

For example, if before raising a round of capital your tech startup values at $200,000, and a single investor invests $100,000 in your next round of capital, your company’s post-money valuation is $300,000. Your investor would hold 33.33% interest in your startup, because it invested $100,000 in a company now worth $300,000

A post-money valuation determines how much equity an investor would acquire in a round of funding.