post-money-valuation

Vocabulary Word

Definition

'Post-money valuation' is a fancy business term. It tells us how much a company is believed to be worth, but only after new investors have injected their money into the company.

Examples in Different Contexts

In startup financing, 'post-money valuation' refers to a startup's valuation after receiving investment, crucial for calculating the equity dilution for existing shareholders. A startup founder might discuss, 'Negotiating our post-money valuation was essential to secure funding while maintaining control over the company.'

Practice Scenarios

Startup

Scenario:

The influx of funds from our recent series funding is going to reflect in our worth. We need to strategize about our next steps now.

Response:

With our recent fund influx, the post-money valuation will give us a clear understanding of our current standing.

Tech

Scenario:

The latest round of investment was successful, boosting our financial prowess. It will impact our company's overall worth.

Response:

The enhanced financial power means our company's post-money valuation will be remarkably higher.