Definition
Pre-money valuation is the estimated value of a company before it receives external funding or investment, used to determine the ownership stake offered to investors.
Related Services
Valuation services, investment advisory, and financial modeling assist businesses in calculating a fair pre-money valuation to attract investors and avoid over- or undervaluation.
Problem and Application
Accurate pre-money valuation is critical for setting appropriate terms for funding rounds and ensuring that both founders and investors are aligned on ownership percentages.
Conclusion
Pre-money valuation is a key metric in funding rounds, helping businesses negotiate fair terms and set realistic expectations for growth and investment returns.
