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What is a post-money valuation?


The post-money valuation refers to a company’s valuation post-investment. For example, if a company has a pre-money valuation of $10 million and raises $2 million from new investors (for simplicity, ignoring any convertible notes or convertible securities), the post-money valuation is $12 million. An investor who invests $2 million in that particular round of funding will measure their percentage ownership of the company as $2 million/ $12 million, or 16.67% of the company.

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