Pre-Money Valuation


A pre-money valuation refers to the value of a company before it goes public or receives other investments such as external funding or financing. Put simply, a company’s pre-money valuation is how much money it is worth before anything is invested into it. [1] [2] [3] [4] [5] [6]


[2] Petty, J.S., and Gruber, M. 2009. “In pursuit of the real deal”. Journal of Business Venturing.

[3] KAPLAN, S.N., and STRÖMBERG, P. 2004. Characteristics, Contracts, and Actions: Evidence from Venture Capitalist Analyses. .

[4] Maxwell, A. L., Jeffrey, S. A., & Lévesque, M. (2011). Business angel early stage decision making. Journal of Business Venturing, 26(2), 212–225.

[5] Rea, R. H. (1989). Factors affecting success and failure of seed capital/start-up negotiations. Journal of Business Venturing, 4(2), 149–158.

[6] Gompers, P. A., Lerner, J., Blair, M. M., & Hellmann, T. (1998). What Drives Venture Capital Fundraising? Brookings Papers on Economic Activity. Microeconomics, 1998, 149.

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