Pre-Money vs Post-Money
A company’s valuation before (pre) and after (post) new investment is added.
Pre-money valuation is the agreed value before the round; post-money equals pre-money plus the new investment. The distinction determines the percentage investors receive, so founders must be clear which figure is being quoted.
Examples
£2m pre-money plus £500k raised gives £2.5m post-money and 20% sold. — Confusion over pre vs post changes ownership materially.
How it relates to The Startup Foundry
Understanding valuation mechanics is part of being investment-ready — covered in the Foundry’s Learn/Improve tools.