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Post-Money Valuation

Glossary Term

Post-money valuation is a term used widely in private equity and venture capital financing negotiations, and refers to the valuation of the company following a financing transaction.

Pre-Money Valuation

Glossary Term

Pre-money valuation is a term used widely in private equity and venture capital financing negotiations, and refers to the valuation of the company prior to a financing transaction.

Dollars-Invested Method

Glossary Term

Dollars-invested method is one of three typical methods by which the price per share of the new preferred stock is determined. The price per share of the new preferred stock is calculated by dividing the agreed-upon pre-money valuation by the fully-diluted shares outstanding at the closing, excluding only the shares of new preferred stock to be sold for cash at the closing.