You have started a new business and are looking for some start-up capital. You are in...
You have started a new business and are looking for some start-up capital. You are in discussions with a venture angel, and you agree that for a $3 million investment, the VC investor will get a 20% ownership percentage of the company.
What is the post-money value of the company?
What is the pre-money value of the company?
Homework Answers
Pre-money valuation refers to the value of a company not including external funding or the latest round of funding.
Post-money valuation includes outside financing or the latest capital injection. It is important to know which is being referred to, as they are critical concepts in valuation
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You have started a new business and are looking for some
start-up capital. You are in...
You have started a new business and are looking for some start-up capital. You are in...
You have started a new business and are looking for some start-up capital. You are in discussions with a venture angel, and you agree that for a $3 million investment, the VC investor will get a 20% ownership percentage of the company. What is the post-money value of the company? What is the pre-money value of the company?
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