Pre-Money and Post-Money Valuation of the Venture Before examining how much equity the crowdfunders would end up with, it is important to grasp the concepts of pre-money and post-money valuation.
Pre-Money Valuation
The pre-money valuation is made by VenReport’s analysts after the process of due diligence has been carried. Taking the crowdfunding startup’s assets, liabilities, technology, intellectual property, etc into account, VenReport determines a value for it. However, our analysts do not add the amount of money the crowdfunders will invest in the company in this valuation for equity crowdfunding for startups.
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