pre-money
Prior to funding
Pre-money describes a company's valuation before receiving new investment.
A startup valued at ten million dollars pre-money that raises two million becomes worth twelve million post-money.
The term appears in venture capital and startup financing: What's your pre-money valuation?
We agreed on a pre-money of five million.
Assessment of monetary worth
- startupNew business enterprise
- fundingSupplying monetary resources
- equityImpartial treatment or ownership value
- investmentDeploying capital for returns
cap · dilution · term sheet · seed · Series A · negotiation · founder · shares
At the outset
- seedEmbryonic plant capsule
- bootstrappedFunded without outside capital
- unfundedLacking allocated resources
- nascentBeginning to develop
prototype · MVP · ideation · proof of concept · sweat equity · friends and family · accelerator · incubator
Conditions of an agreement
- leverageBorrowed capital for amplified returns
- bargainingNegotiating mutually acceptable terms
- due diligencePre-transaction reasonable care
- anti-dilutionInvestor safeguard against dilution
participation · control · milestones · traction · comparable · benchmark · market rate
valuation
Assessment of monetary worth
- startupNew business enterprise
- fundingSupplying monetary resources
- equityImpartial treatment or ownership value
investment · cap · dilution · term sheet · seed · Series A · negotiation · founder · shares · ownership
early-stage
At the outset
- seedEmbryonic plant capsule
- bootstrappedFunded without outside capital
- unfundedLacking allocated resources
nascent · prototype · MVP · ideation · proof of concept · sweat equity · friends and family · accelerator · incubator · pitch competition
terms
Conditions of an agreement
- leverageBorrowed capital for amplified returns
- bargainingNegotiating mutually acceptable terms
- due diligencePre-transaction reasonable care
anti-dilution · participation · control · milestones · traction · comparable · benchmark · market rate