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fundraising
Valuation
Estimated worth of a company used to determine equity given for investment.
Valuation is the estimated worth of a company at a given point in time. Pre-money valuation is before new investment, post-money includes it. Valuation determines how much equity investors receive for their capital.
Formula
Post-Money Valuation = Pre-Money Valuation + Investment AmountTips
- Valuation = Price × Shares Outstanding
- SaaS valued at multiples of ARR
- Balance valuation against dilution
Related Terms
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