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Home > Pre-money valuation


A pre-money valuation is the valuation of a firm prior to outside investment or financing.

There are several methods of calculating a pre-money valuation. Key variables that are used include predicted cash flows and other signs of future growth.

External investors, such as venture capitalists and angel investors will use a pre-money valuation to help determine how much equity to demand in return for their cash injection to an entrepreneur and his/her startup company.





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