Post-money valuation

Post-money valuation is the value of a company immediately after a financing round is completed — it includes the newly invested capital. It is calculated as: post-money = pre-money valuation + amount raised. It is the reference for calculating new investors' ownership percentage: investor % = amount raised / post-money valuation. In fundraising negotiations, the distinction between pre-money and post-money is fundamental and a frequent source of confusion: a CHF 10 million post-money at CHF 2 million raised implies an CHF 8 million pre-money — and therefore different dilution than a CHF 10 million pre-money at the same investment.

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Example: a startup valued at CHF 9.0 million pre-money raises CHF 3.0 million in Series A. Post-money valuation = CHF 12.0 million. Investors receive 3.0/12.0 = 25% of the post-money capital. Founders are diluted from 100% to 75%, but their absolute shareholding value remains 75% × CHF 12.0 = CHF 9.0 million — unchanged versus their pre-round value, with upside potential from the deployed capital.

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Hectelion systematically clarifies the pre/post-money distinction in startup valuations and fundraising negotiations to prevent misunderstandings on dilution economics.