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