<ul><li>Pre-Money Valuation is the value of a business before any new investors come in, representing the assets, recipes, location, and brand.</li><li>Post-Money Valuation is the total value of a business after new investment and is calculated by adding pre-money valuation and the new investment amount.</li><li>Investors' ownership percentage is calculated by dividing the investor's investment by the post-money valuation.</li><li>Valuation cap is a promise in investment agreements to treat the investment as if it was made at a capped value, providing protection to investors.</li></ul>

What Is Pre-Money and Post-Money Valuation?

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