Post-Money Valuation

Post-money valuation is the estimated worth of a company immediately after it receives new investment. It includes the company's pre-investment value plus the amount of new funding raised. For example, if a company was valued at $10 million before a funding round and raises $2 million, its post-money valuation becomes $12 million. This metric helps investors and founders understand the company's value considering the recent investment, guiding ownership percentages and future fundraising or exit strategies.