Pre-money valuation
What your company is agreed to be worth immediately before new investment goes in.
Why it matters
This is the number that determines how much of the company you sell. Founders fixate on it, sometimes at the cost of terms that matter more.
A worked example
You agree a $12M pre-money and raise $3M. Post-money is $15M, and the new investors own $3M / $15M = 20% of the company.
What is typical
Quoted alongside the round size in every term sheet. Always confirm whether a new option pool sits inside or outside the pre-money, because that changes who pays for it.
Related terms
Option pool
Shares set aside to grant to future employees, usually expressed as a percentage of the fully diluted company.
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VCTerminal models these terms on your real cap table, so you can see what a term sheet pays you before you sign it.
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