When talking about raising capital for a start up company, what does the term "Pre-" and "Post-" mean?

Your "pre-" money valuation is what your company is worth prior to taking an investment. If you somehow determine that your company is worth $1M before the investment, that is its "pre-money" valuation.

Let's say you sell 25% of your company for $250,000. Now, even though you (and the other shareholders) have given up 25% of your holdings, your "post-money" valuation is $1,250,000.

These terms are vernacular for the investment industry.

Whatever we are talking about, "pre-" always means before and "post-" always means after.

pre, means before post, means after

The truth is it means before and after. It could be before or after starting-up or it could be before or after going public. Those are just examples. You need to provide the part of the word that follows those prefixes.

Pre means before and Post means after.

Tags

　　Seed Capital 　　Return Investment 　　Real Money 　　Real Estate Investment 　　Raise Capital 　　Property Investment 　　Profitable Investments 　　Private Investment

Related information

Raising capital for web page.?

What's the question? You can spend a few bucks at godaddy.com and get a webpage opened and then a few more bucks to make the site work and be viewed. What is it you want to do on the site?...

How long will it take to raise my credit limit from $500 to at least $2000 with Capital One?

Hello - I have a credit card from Capital One with a similar situation. I had limited credit history and was given a $500 limit. Id say it was 1 yr from opening the card that Cap One raised my cred...

How can i raise $25,000 in a month legitimately without any or little capital outlay & not working a day job?

1) Discover gold or oil on a property where you own the mineral rights. (Jed Clampett) 2) Become the King or President of some other nation that is rich in natural resources. (King Hussein of Jo...

What are some typical equity capital raising stages prior to initial public offering?

Red Herring is my favorite.

...

Venture Capital Funding and Salaries?

No. You won't get a salary. In fact, you have to invest your own money too and sell your car or house or apply for a loan. If you don't risk your own money in the business nobody else...

I'm looking to raise about $3000 b4 June 3... how do I go about, in regards to sponsorship or whatever?

Banks offer unsecured loans if you have a good credit rating. Alternatively if you are based in the US you can get unsecured loans from www.prosper.com. You will be borrowing from other individua...

What's a step by step process to starting a beverage business and what's the best process for raising capital?

first purchase a book on the beverage business, second, read it!

...

Is an issue of share options a good way of raising capital to grow my new buisiness before it proves itself?

With the inception of a share options grant, no capital is raised and no accounting entries are created. If and when they are exercised, the share option reserve is reduced and your share capital i...