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Funding and ownership

Valuation

What investors agree the company is worth, usually set when it raises money. It's a negotiated number, not a measured one.

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 at a forty million valuation.

Why it matters to you.

It's what makes your equity look valuable on paper. Paper is the important word.

Related terms.

Videos.

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