A pre-money valuation is a critical term used in private equity or venture capital that refers to the valuation of a company or asset prior to an investment or financing.

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 or her startup company. This is calculated on a fully diluted basis.

See also: [[Post-money]]
Copied from: http://en.wikipedia.org/wiki/Pre-money_valuation
bag
mbi_public
created
Thu, 04 Nov 2010 10:30:23 GMT
creator
dirkjan
modified
Thu, 04 Nov 2010 10:30:23 GMT
modifier
dirkjan
tags
M10
Term
creator
dirkjan