Equity & People
What is Post-Money Valuation?
Post-Money Valuation: definition
Valuation in a financing round is quoted two ways. Pre-money is the company’s agreed value before the new investment; post-money is that value plus the money raised. The distinction matters because an investor’s ownership percentage is their investment divided by the post-money valuation, so whether a number is quoted pre- or post-money changes exactly how much of the company changes hands.
Post-money valuation
Post-Money = Pre-Money + New Investment; Investor % = Investment ÷ Post-Money
Confusing pre- and post-money is a common and expensive mistake: it changes the resulting ownership split.
How Fintra handles it
Fintra models rounds in pre- and post-money terms on the cap table, computing each investor’s ownership and the dilution to existing holders. Because SAFEs, option-pool changes, and the new investment all interact, Fintra shows the full post-round fully diluted picture, so the founding team understands the real ownership outcome before signing.
Worked example
Questions people ask
What is the difference between pre-money and post-money valuation?
Pre-money is the company’s value before the new investment; post-money is pre-money plus the money raised. An investor’s ownership equals their investment divided by the post-money valuation, so the two figures produce different ownership splits.
How do you calculate ownership from post-money?
Divide the amount invested by the post-money valuation. A $2M investment at a $10M post-money valuation buys 20%. This is why founders must be clear whether a quoted valuation is pre- or post-money before agreeing to terms.
Why does the pre/post distinction matter so much?
Because it directly changes dilution. The same "$8M valuation" means very different ownership depending on whether it is pre- or post-money once the raise is added. Modeling it precisely, as Fintra does, avoids an expensive misunderstanding.
Does Fintra model pre- and post-money rounds?
Yes. Fintra models rounds in both terms on the cap table, computes investor ownership and existing-holder dilution, and shows the full fully diluted picture including SAFEs and pool changes before you close.
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