Pre Money Valuation and Post Money Valuation
Pre Money Valuation and Post Money Valuation
Please answer the and provide numerical example for each following questions:
● Explain the difference between pre-money valuation and post-money valuation.
● Discuss what is meant by a capitalization (or cap) rate in reference to calculating a terminal value.
● What other types of terminal values might be appropriate (i.e., other than smooth growth procedures)?
● Describe the process for estimating the percentage of equity ownership that must be given up by the founder when a new equity investment is needed.