Pre-money Valuation
Pre-money valuation is the estimated value of a company before any external funding is added. It is a critical metric in venture capital, as it determines the value of the company’s equity before investors inject new capital. Pre-money valuation influences the negotiation of ownership stakes and is essential for structuring investment deals that align with both investor and founder goals.
Key Takeaways
- Estimated value before external funding.
- Key metric in VC negotiations.
- Determines equity value before new capital injection.
- Influences ownership stakes and deal structuring.
