Q&A

Question: What is a pre-money valuation?

A company’s pre-money valuation is the value of the company immediately before making an investment.

For example, if you and your co-founder invest $100,000 into your startup and your technology developments value at $100,000, you will be looking at an investor investing at a pre-money valuation of $200,000.

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