post-money valuation

Definition

Company valuation after investment capital is added, the number founders brag about while carefully omitting the 'post-money' qualifier. What your company is theoretically worth with someone else's money included.

Example Usage

We raised $5M at a $20M post-money valuation, giving investors 25% of the company.

Origin

Venture capital valuation terminology standardized in the 1980s

Fun Fact

Confusing post-money and pre-money valuations is a common founder mistake that can cost millions in unexpected dilution.

Source: Venture capital valuation terminology

Related Terms

Intermediate

down-round

A funding round at a lower valuation than the previous round, signaling either terrible execution or terrible timing. Triggers anti-dilution provisions and existential crises among founders.

🚀 Startup / VC

Beginner

launch

The moment when something new is officially unleashed upon the world, whether it's a product, company, or ship sliding into water. In business and tech, launches involve coordinated marketing campaigns, press releases, and the collective hope that people will actually care. It's the corporate equivalent of a grand opening, complete with champagne (or energy drinks, depending on the industry).

🚀 Startup / VC

Beginner

Iterate

To make small, incremental improvements to something, which is a sophisticated way of saying "it's not done but we're shipping it anyway." The philosophy of iterate fast, break things has broken many things and iterated on surprisingly few.

💻 Tech / IT🚀 Startup / VC

Beginner

Runway

The amount of time a startup has before it runs out of money and crashes, much like an actual runway but with more crying. It's measured in months and discussed in board meetings with the same energy as a doctor delivering a terminal diagnosis.

🚀 Startup / VC

Intermediate

valuation cap

The maximum valuation at which a convertible note or SAFE will convert to equity—a safety net for early investors betting on you when you were nobody. The lower the cap, the more expensive your desperation was.

🚀 Startup / VC

Beginner

growth stage

The phase when a startup has proven product-market fit and focuses on scaling revenue, typically raising Series B or C funding. Where dreams of changing the world meet the reality of quarterly revenue targets.

🚀 Startup / VC

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