--- title: "Pre-Money Valuation, Definition | MedTech Terms" description: "Company valuation immediately before new money is invested. Plain-English Investment & Finance definition for MedTech teams, with examples and related terms." lang: en json-ld: | { "@context": "https://schema.org", "@graph": [ { "@type": "DefinedTerm", "@id": "https://medtechterms.com/terms/pre-money-valuation#term", "name": "Pre-Money Valuation", "description": "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. 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[Home](/) 2. / 3. [Terms](/terms) 4. / 5. [Investment & Finance](/terms?cat=Investment%20%26%20Finance) 6. / 7. Pre-Money Valuation [All terms](/terms) Investment & Finance [Startup Lifecycle](/ecosystems/startup-lifecycle) # Pre-Money Valuation Company valuation immediately before new money is invested. Reviewed by [Christian Espinosa, Founder, Blue Goat Cyber](/authors/christian-espinosa) Last reviewed May 5, 2026 ## Definition Pre-money valuation is the agreed equity value of a company before a new financing closes. [Post-money valuation](/terms/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](/terms/m-and-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. ## Related terms Grouped by theme ### Editor's picks · Hand-selected related concepts [ Investment & Finance Employee Option Pool Shares reserved for issuance to employees as stock options. ](/terms/option-pool)[ Investment & Finance Post-Money Valuation Company valuation immediately after a financing closes. ](/terms/post-money-valuation)[ Investment & Finance Term Sheet Non-binding outline of the key economic and control terms of an investment. ](/terms/term-sheet) ### More in Investment & Finance · Same category [ Investment & Finance 409A Valuation An independent fair-market-value appraisal of common stock used to set tax-compliant strike prices for employee stock options. ](/terms/409a-valuation)[ Investment & Finance Anti-Dilution Protection Adjustment that protects investors if the company raises a future round at a lower price. ](/terms/anti-dilution)[ Investment & Finance Bridge Round Interim financing between priced rounds, usually convertible. ](/terms/bridge-round)[ Investment & Finance Burn Rate Rate at which a company spends cash, typically expressed monthly. ](/terms/burn-rate) Cited by Where this term appears across MedTech Terms. Ecosystems (1) - [Startup Lifecycle](/ecosystems/startup-lifecycle) ## Primary references 3 sources Link health: 3 verified · last checked 2026-06-20 PitchBook· 1 NVCA· 1 SVB· 1 1. [1 PitchBook - MedTech Coverage Verified PitchBook · pitchbook.com ](https://pitchbook.com/news/articles/topic/healthtech) 2. [2 NVCA Model Documents Verified NVCA · nvca.org ](https://nvca.org/model-legal-documents/) 3. [3 Silicon Valley Bank - Healthcare Reports Verified SVB · svb.com ](https://www.svb.com/trends-insights/) Inline markers like \[1\] jump to the matching reference above. Sponsor note ### Diligencing a MedTech cybersecurity posture? Blue Goat Cyber supports investors and acquirers with cybersecurity diligence on connected MedTech assets. [Book a 30-minute discovery session](https://go.bluegoatcyber.com/meetings/blue-goat-cyber/discovery-session) - No obligation - Expert-led from minute one - NDA available on request MedTech Terms is a community resource sponsored by [Blue Goat Cyber](https://bluegoatcyber.com). Definitions are independent of any vendor. On this term Category Investment & Finance Sources 3 Updated 5/5/2026 [Compare with another term](/compare?a=pre-money-valuation) Learn in 60 seconds Card Lesson Quiz Company valuation immediately before new money is invested. - · 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. - · Post-money valuation equals pre-money plus the new investment. Remember this Watch out: Forgetting that an option pool 'top-up' typically comes out of pre-money, diluting founders not investors. Related terms - [Post-Money Valuation ](/terms/post-money-valuation) - [Employee Option Pool ](/terms/option-pool) - [Term Sheet ](/terms/term-sheet) You may also need Auto-suggested from Investment & Finance and shared keywords. - [409A Valuation ](/terms/409a-valuation) - [Capitalization Table(Cap Table) ](/terms/cap-table) - [Down Round ](/terms/down-round) - [Valuation Cap ](/terms/valuation-cap) - [Convertible Note ](/terms/convertible-note) - [Drag-Along and Tag-Along Rights ](/terms/drag-tag-along) [All Investment & Finance terms](/terms?cat=Investment%20%26%20Finance) MedTech Terms An authoritative, plain-language reference for the regulatory, quality, cybersecurity, and software terms that shape modern medical devices. 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