Post-money valuation is the value of a company after an investment has been made. This value is equal to the sum of the pre-money valuation and the amount of new equity.

External investors, such as venture capitalists and angel investors, will use a pre-money valuation to determine how much equity to demand in return for their cash injection to an entrepreneur and his/her startup company. The implied post-money valuation is calculated as the dollar amount of investment divided by the equity stake gained in an investment.

See also: [[Pre-money]]
Copied from: http://en.wikipedia.org/wiki/Post-money_valuation
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mbi_public
created
Thu, 04 Nov 2010 13:40:06 GMT
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dirkjan
modified
Thu, 04 Nov 2010 13:40:06 GMT
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dirkjan
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M10
Term
creator
dirkjan