Glossary
Pre-money and post-money valuation
A company's value before new investment is added (pre-money) and after it (post-money).
Pre-money valuation is what a company is valued at just before a funding round. Post-money valuation is that figure plus the new money raised. If a company valued at $9 billion pre-money raises $1 billion, its post-money valuation is $10 billion.
The difference matters when comparing rounds or calculating how much of a company investors bought. Investors' share of the company is their investment divided by the post-money valuation.
Announcements do not always say which figure they are using. When the gap between the two equals a large raise, mixing them up can make a company look more or less valuable than it is.
Read more: our explainer