Raising money
Pre-money and post-money valuation
Pre-money valuation is what your company is agreed to be worth just before new investment comes in, and post-money valuation is that number plus the new money.
Also called pre-money, post-money valuation, post-money
The post-money number decides what share of the company each investor owns after the round. People sometimes quote one number without saying which kind they mean. That gap changes the ownership math, even though the headline figure looks the same. Always ask which one a number is.
This is not legal or tax advice, check with a lawyer or accountant.
When this shows up
Example, not a real founder: an investor says they will invest at a certain valuation, and you assume it is pre-money. The term sheet, the short summary of the deal's terms, says post-money. The new money is already inside that number, so you keep less of the company than you had worked out.
What to do next
For any valuation you hear, ask in writing whether it is pre-money or post-money. Then divide the new money by the post-money valuation to see the share you are selling.