Venture Capital / Pre

Business & Finance
Tutor: None Selected Time limit: 1 Day

can someone please explain the difference between pre and post money in venture capital? also, how does this work with convertible notes?

Jun 30th, 2015

Thank you for the opportunity to help you with your question!

Both pre-money and post-money are valuation measures of companies. Pre-money refers to a company's value before it receives outside financing or the latest round of financing, while post-money refers to its value after it gets outside funds or its latest capital injection. Pre-money valuation refers to the value of a company not including external funding or the latest round of funding. Post-money valuation, then, includes outside financing or the latest injection.

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 30th, 2015

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