# Pre-money valuation

> For the complete documentation index, see [llms.txt](/llms.txt).

## Definition

1. The valuation of a company prior to the investment about to be made.

## Formula

2. Pre-money valuation = post-money valuation - money raised in a given round. #maths.

## Example

Example sentence: SunSipz's pre-money valuation was $4.5 million before a VC invested 500K in their Series A.