Post-money valuation = $6M + $1.5M = $7.5M

Mon, 04 May 2026 18:40:58 +0000

Understanding Post-Money Valuation: What Is It and How It Works (Example: $6M + $1.5M = $7.5M) When building or valuing a startup, one of the most fundamental financial terms you’ll encounter is post-money valuation. Whether you’re raising capital, negotiating equity, or planning future funding rounds, understanding how post-money valuation impacts your business is essential. In this article, we break down what post-money valuation means, how it’s calculated, and use a practical example—$6M pre-money valuation plus $1.5M in investment—equaling a $7.5M post-money valuation. --- ### What Is Post-Money Valuation?