FFI GLOSSARY

Post-Money Valuation


Definition

The implied value of the entire company immediately after the completion of a funding round, calculated as the pre-money valuation plus the amount of new capital invested in the round. Post-money valuation is used to calculate the investor's ownership percentage: the investor's ownership equals the amount invested divided by the post-money valuation.

Common Misapplication

The most common misapplication is calculating post-money valuation without accounting for the concurrent conversion of outstanding SAFEs and convertible notes. Where SAFEs convert at the round, the post-money fully diluted share count includes the shares issued to SAFE holders, which increases the post-money valuation and dilutes all pre-round holders including the new investor.

FFI Standard Reference

This term is defined and applied in Book 4, Section 4.1: The Valuation Methodology Standard.

Related Terms


Citable URL

This term may be cited using the following permanent URL.

https://ffistandard.org/glossary/post-money-valuation/

Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Post-Money Valuation. https://ffistandard.org/glossary/post-money-valuation/. 2026.

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