Post money evaluation is one of the indicators for the company’s success. The post money evaluation is derived from many parameters, such as the capital raised by the company, the company’s physical and intellectual assets (particularly relevant to start-ups), estimate of future profits and more. The Post money evaluation represents the worth of all of the company’s assets combined after receiving the investment. For example, if a company was worth four million dollars, and the investor has invested an additional two million dollars in exchange for a certain amount of shares; the post money evaluation of the company will be equal to six million dollars. The evaluation can be done using various methods, including the multiplier method, system asset value method, cash flow method etc.
What is “Post money evaluation” ?
About the Author: Yana Sheinberg
Yana is a third-year student in the joint program of Law and Government at the IDC Herzliya. In her free time, Yana enjoys sports, reading and crafting.