Glossary · Valuation
Pre-money valuation
What investors agree the company is worth **before** their new money hits the bank. It sets the baseline for price per share in a priced round.
Related: Post-money valuation · Priced round · Option pool
A bit more nuance▾
- Post-money = pre-money + new money (simplified view).
- Option pool expansions can sneak into pre-money negotiations.
Go deeper▾
Discussion questions▾
- What story makes your pre-money number believable?
- How would a 20% smaller pre-money change your hiring plan?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.