In Photos: 10 Terms You Must Know Before Raising Venture Capital — forbes.com

So let’s start very simply: valuation is the monetary value of your company.The difference between pre-money valuation and post-money valuation is also very simple. Pre-money refers to your company’s value before receiving funding. Let’s say a venture firm agrees to a pre-money valuation of $10 million for your company. If they decide to invest $5 million, that makes your company’s post-money valuation $15 million. Post-money valuation = pre-money valuation + new funding

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