Post-Money Valuation
A Post-Money Valuation is the estimated value of a company immediately after receiving external funding or capital injection. It’s calculated by adding the newly raised capital to the company’s pre-money valuation.
Formula:
Post-Money Valuation = Pre-Money Valuation + New Investment
This figure determines the ownership stake of new investors and the dilution effect on existing shareholders. For example, if a company’s pre-money valuation is AED 20 million and it raises AED 5 million in a funding round, its post-money valuation would be AED 25 million.