Deal Terms
Post-Money Valuation
A company's valuation immediately after a funding round closes, including the new capital raised.
Post-money valuation is the company's equity value after new investment is added. Formula: Post-money = Pre-money valuation + Capital raised. Example: if a company has a $10M pre-money valuation and raises $2M, the post-money valuation is $12M. The investor's ownership = capital invested / post-money valuation = $2M / $12M = 16.7%. Post-money valuation is how founders and investors express 'what the company is worth' after a round closes. All subsequent equity grants and transactions reference the post-money valuation as the benchmark. Distinction: post-money is not the same as the company's 'true value' — it's the negotiated price at which the current round was transacted.