What is post-money valuation?
Post-money valuation is the company's total estimated value immediately after a funding round. It is calculated as: Pre-money valuation + Invested capital = Post-money valuation.
Example
If a company is valued at 100 MSEK (pre-money) and raises 20 MSEK in a round, the post-money valuation becomes 120 MSEK. The investor in the round then owns 20/120 ≈ 16.7% of the company.
Why does it matter?
The post-money valuation is the reference point often used when discussing a company's value and serves as the basis for pricing on the secondary market.