Post-Money Valuation
Also called Post-Money
A company's valuation right after an investment, equal to the pre-money valuation plus the amount raised. An investor's ownership is their cheque divided by this number.
Post-money = pre-money valuation + investment amount
Why it matters
Post-money is what ownership percentages are calculated against, and post-money SAFEs use it directly. Confusing it with pre-money is a classic way founders miscalculate how much they are giving away.
For example
A startup raises 5 crore at a 20 crore pre-money valuation, making the post-money 25 crore, so the investor owns 5 of 25, or 20 percent.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Raising your first round, part of the Starting Up hub.
eChai Partner Brands
