Scale#It is a Knowledge and Competency resource for entrepreneurs to strengthen governance and investors to fuel their knowledge of this asset class. This platform is under construction. Click on this banner to sign-up to be informed of new articles as they are released.

What is the difference between pre-money and post-money valuation?
Play Video

What is the difference between pre-money and post-money valuation?

Published on 18/08/2022
Contributor(s): Harold Grosfils

The pre-money value of a company is its intrinsic value before any new capital is contributed. Before considering a capital increase, it is obviously important that the entrepreneur and the investor agree on this pre-money value. The post-money value is simply the pre-money value plus the amount of the capital increase.

A small example. Let’s imagine that an entrepreneur is looking for 2 million euros in exchange for 25% of his capital. The post-money value would then be 8 million euros (2 million divided by 25%), and the pre-money value would then be 6 million (8 million minus 2 million).

Other Resources for Entrepreneurs and Investors

Other articles by Harold Grosfils

Contact us

I am an entrepreneur

...and I want to scale up!

We can help finance your venture

Learn how

I am an investor

TheClubDeal Fund II still accepts commitments

See what TheClubDeal can offer

Learn More

Subscribe to our Newsletter

We seek to customise the content to the segments we serve.

These are both fund investors and the entrepreneurs with whom we have created alliances.

We are happy to keep in touch.

TCD Form Template Style

Subscribe to Scale#It

We are currently building the portfolio of resources to scale ventures with resilient governance.

This newsletter allows you to be kept informed of the new articles published by TheClubDeal.

Scalastra Signup