Funding
Pre-Money Valuation
Definition
What your company is worth before an investor's money goes in. If an investor puts in ₹2 Cr at a ₹8 Cr pre-money valuation, the post-money valuation is ₹10 Cr and they own 20%.
Why founders care
Always agree on pre-money valuation first — not post-money. "I'm giving you 20% for ₹2 Cr" is ambiguous; "₹8 Cr pre-money" is precise.
Related terms
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