Post-money valuation

How it works

Post-money = pre-money + investment. It's the number investors and analysts cite when talking about a round ("X raised at a $50M post-money"). It also determines new investor ownership: investment / post-money = % owned. Modern SAFEs are written on a post-money basis, which makes founder dilution transparent up-front.

Related terms

• Pre-money valuation
  Pre-money valuation is what a company is worth before the new investment is added — used to calculate how much of the company the new investors are buying.
• SAFE (Simple Agreement for Future Equity)
  A SAFE is a short investment contract that gives an investor the right to receive shares in a future priced round, without setting a valuation today.
• Dilution
  Dilution is the reduction in an existing shareholder's ownership percentage that happens when a company issues new shares — typically when raising a new round.