Pre-Money Valuation

Pre-money valuation - Pre-money valuation is a term, used to valuate a company before an investment is made. The valuation before a money injection is usually calculated in the assets that a company has standing out, and the value that they represent. Venture capitalists and angel investors use this to calculate how much equity to ask for their money injection. Equity is another word for share of stock, which represents a certain part of ownership in the company. Usually investors make investmens to gain profit on short or long term. For the company in question money injections often are essential to let the company grow.