What is the difference between pre-money valuation and post-money valuation?
A)the size of the capitalization rate
B)the amount of money injected by new investors
C)the terminal value
D)the amount of money previously contributed by founders

Question

Quizplus · Accepted Answer

Pre-money valuation refers to the valuation of a company before it receives any external funding, while post-money valuation refers to the valuation of a company after it has received external funding (usually from venture capitalists or other investors). The difference between the two valuations is the amount of money injected by new investors, which is reflected in the post-money valuation. Therefore, the correct answer is B.

What Is the Difference Between Pre-Money Valuation and Post-Money Valuation