Startup Terms Glossary
What is Pre Money Valuation?
A pre money valuation refers to the value of a company before any investments are made into it. The pre money valuation of a company is significant because it helps investors to see which companies are profitable enough for them to take an interest in. The higher the pre money valuation of a company is, the less risky the investment.
Pre Money Valuation Examples
Here is an example of pre money valuation:
- Point 1. A startup company and an investor have agreed that the value of their company is $500,000. The investor agrees to invest $25,000 into the company in exchange for a portion of ownership. The pre money valuation of the company is the value before any investments are made– in this case, $500,000.
This web page is also about pre money valuation.
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Caudill Arundell Law PLC is a Phoenix based civil law firm providing quality, effective and affordable legal services. Richard C Caudill-Arundell, LP, MLS (Hons), G Cert LP is the Managing LP for the firm and is licensed to practice limited jurisdiction civil law in the State of Arizona (Legal Paraprofessional). Offering affordable real estate rental, transactional and business contract drafting, review and analysis, and breach of contract advice. Publications: https://scholar.google.com/citations?user=za5yjFcAAAAJ&hl=en Education: University of Arizona James E Rogers College of Law - Master of Legal Studies Cum Laude, Graduate Certificate LP
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For the past 25+ years, I have been a practicing attorney in New Jersey. An expert in contractual matters, I have assisted countless clients in an assortment of personal and business matters. Most recently with the Sokol Firm in Haddonfield, I assisted homeowners in financial distress.
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