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    Pre-Money Valuation

    Company valuation immediately before new money is invested.

    Reviewed by Christian Espinosa, Founder, Blue Goat CyberLast reviewed May 5, 2026

    Definition

    Pre-money valuation is the agreed equity value of a company before a new financing closes. Post-money valuation equals pre-money plus the new investment. The price per share in the round equals pre-money divided by fully-diluted shares outstanding (including option pool top-ups).

    What this means in practice

    Pre-money pricing is the central negotiation in any priced round. In MedTech, comparable companies, comparable transactions (M&A multiples on revenue or enterprise value per installed base), and risk-adjusted NPV of the lead program drive the discussion.
    Common pitfalls
    • •Forgetting that an option pool 'top-up' typically comes out of pre-money, diluting founders not investors.

    Primary references

    3 sources
    Link health: 1 verified 1 bot-blocked 1 needs review· last checked 2026-05-09
    Investopedia·1PitchBook·1NVCA·1
    1. 1
      Investopedia: pre-money
      Needs review
      Investopediainvestopedia.com
    2. 2
      PitchBook - MedTech Coverage
      Bot-blocked
      PitchBookpitchbook.com
    3. 3
      NVCA Model Documents
      Verified
      NVCAnvca.org

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