Pre-Money Versus Post-Money Valuation: How Much Capital Is Too Much?

Startup employees reviewing finances and pre- and post-money valuations when raising capital.

As the owner of a startup, you have a laundry list of things you’re concerned about and raising capital is likely near the top of that list. You need capital to scale and grow your business, but you don’t want to give away too much ownership. With an understanding of the differences between pre-money and post-money valuations, their importance, and how the amount of capital you raise can impact your ownership, you will have a better idea of how much capital you want to raise for your business.

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