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Funding and ownership

Post-money valuation

The pre-money valuation plus the new money. The investor's share is their money divided by the post-money: £2 million into a £10 million post-money valuation is 20 per cent.

A plain-English explanation, not financial or tax advice. Rules and rates change, so check your own situation. For free, impartial guidance, try MoneyHelper. Disclaimer.

You'll hear it as

We raised two million at ten million post.

Why it matters to you.

Always ask pre or post. "Two million at ten million" means 20 per cent if ten is post-money, but only 16.7 per cent if it's pre-money (two out of twelve). To see your own new share, multiply your old percentage by pre-money divided by post-money.

Related terms.

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