Pre-Money vs Post-Money | Why It Matters These two terms confuse a lot of first-time founders, but understanding them can save your equity. Here’s the difference (in plain terms): Pre-Money Valuation → What your startup is worth before new money comes in. Post-Money Valuation → What it’s worth after the investment is added. 🧠 Why it matters: Let’s say an investor puts in ₹1Cr. If your pre-money is ₹4Cr → post-money becomes ₹5Cr Investor owns ₹1Cr / ₹5Cr = 20% But if you thought you agreed to a ₹5Cr pre-money - now they own ₹1Cr / ₹6Cr = 16.6% Small mistake here = big dilution later. Always clarify which one you're talking about in your emails and term sheets. If you need help raising funds, DM me.
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