Pre-Money Valuation: Importance, Calculation, Example & More

Pre-money valuation is the estimated worth of your startup. It is done before going for an external round of funding. The value is estimated based on the company’s current performance, potential growth, and market dynamics. How is it different from post-money valuation? Post-money valuation is the estimated value of the company after the funding round. The difference between pre and post-money valuation is the amount of funding received.