Pre-Money Valuation

Dilution occurs when a company issues new shares, reducing existing ownership percentages. This article explains the mechanics, the trade-offs with valuation, and the impact on founder control.

Post-money valuation is the value of your company after investment. It determines investor ownership and sets the benchmark for future growth and fundraising expectations.

Pre-money valuation is the value of your company before investment. It is the critical number that determines how much equity you must give up to secure capital.