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  • Pre Money Post Money - CTV - 02aug2021

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    Vrushab Punjabi
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    The document discusses how to calculate dilution when external capital is raised for a venture. It provides an example where a pre-money valuation is $40 million, $10 million is raised, resulting in a post-money valuation of $50 million. In this case, the original owner's ownership is diluted to 20% due to the capital raised. The document explains how to calculate pre-money valuation, amount raised, post-money valuation, and the owner's resulting ownership percentage after dilution from external investment.

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    Pre Money Post Money_CTV_02Aug2021

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    The document discusses how to calculate dilution when external capital is raised for a venture. It provides an example where a pre-money valuation is $40 million, $10 million is raised, resulting in a post-money valuation of $50 million. In this case, the original owner's ownership is diluted to 20% due to the capital raised. The document explains how to calculate pre-money valuation, amount raised, post-money valuation, and the owner's resulting ownership percentage after dilution from external investment.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    9 views2 pages

    Pre Money Post Money - CTV - 02aug2021

    Uploaded by

    Vrushab Punjabi
    The document discusses how to calculate dilution when external capital is raised for a venture. It provides an example where a pre-money valuation is $40 million, $10 million is raised, resulting in a post-money valuation of $50 million. In this case, the original owner's ownership is diluted to 20% due to the capital raised. The document explains how to calculate pre-money valuation, amount raised, post-money valuation, and the owner's resulting ownership percentage after dilution from external investment.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 2

    How to compute dilution ?

    How much of your ownership would you sh


    How much of the venture you would own v

    Original Akash's Wallet 100 Pre-Moneyvaluation before external capital


    Khushi's contribution to Akash's Wallet 20 Ask Money Raised / Money Invested
    New Value of Aakash's Wallet 120 Post-MoneValuation AFTER external contribtion
    Khushi's Share of Aakash's Wallet 16.7% Ask / Post Money
    Aakash's Share of New Value 83.3%

    HOW TO TALK VALUATION?


    Pre-Money + Ask = Post Money

    If a venture raises USD 10 MM at a Pre Money valuation of USD 40 MM, then how muhc is the venture di

    Post - Money 50
    Ask 10
    Pre-Money 40
    Dilution / Ownership 20.0%
    wnership would you share with the investor? = F
    nture you would own via your investment ? = I

    rnal capital
    ey Invested
    ernal contribtion

    muhc is the venture diluting?

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