Valuation
The estimated monetary worth of a company, used to determine how much equity investors receive.
Valuation determines the price of a startup’s shares in a round. Pre-money valuation is the value before new investment; post-money is pre-money plus the new money raised. Early-stage valuations rely on market size, team, traction, comparables and investor demand rather than profits. Getting it right balances dilution against credibility.
Examples
A startup raising £500k at a £2m pre-money has a £2.5m post-money and sells 20% equity. — Investors push back on a £10m valuation for a pre-revenue company.
How it relates to The Startup Foundry
The Investability Report’s four pillars map directly to the drivers of valuation. The Foundry helps you build a defensible story so you can justify your number to investors.