{
  "rogueId": "fundraising.pre_money_valuation",
  "slug": "pre_money_valuation",
  "domain": "fundraising",
  "defaultLabel": "Pre-Money Valuation",
  "description": "Company valuation negotiated with investors immediately before the new round closes — the denominator for the new investors' ownership math. Per the NVCA Model Documents, pre-money = post-money − new money raised. Common pitfall: when convertible instruments (SAFEs, notes) are outstanding, the \"headline\" pre-money the CEO quotes and the effective pre-money after conversion can differ materially — the board should always ask for both. Equally important: option-pool top-ups taken pre-close come out of the pre-money share count, diluting founders not investors (the \"option pool shuffle\").",
  "fieldType": "currency",
  "unit": null,
  "maturity": "general",
  "suggestedForStages": [
    "preSeed",
    "seed",
    "seriesA",
    "seriesB",
    "seriesC"
  ],
  "defaultOwningFunctions": [
    "Finance"
  ],
  "stageRelevance": {
    "preSeed": "core",
    "seed": "core",
    "seriesA": "core",
    "seriesB": "core",
    "seriesC": "core"
  },
  "definitionSource": {
    "tier": "published",
    "sourceName": "NVCA Model Legal Documents (2024 revision)",
    "sourceUrl": "https://nvca.org/model-legal-documents/",
    "sectionRef": "Series A Charter — Original Issue Price",
    "publicationDate": "2024-01-01",
    "attributionNotice": null
  },
  "formula": "pre_money_valuation = post_money_valuation − total_round_size. Per NVCA Model Documents convention. Effective pre-money after SAFE/note conversion can be lower than headline — surface both when convertibles are material.",
  "whyItMatters": "Sets the price for the round. Drives `founder_dilution`, the option-pool top-up math, and the precedent for the next round (down-rounds are punishing to recover from).",
  "interpretationGuidance": "Compare to stage-relative ranges from quarterly Carta / PitchBook reports (e.g. seed median has moved $12–18M post-money in 2024–2025). A pre-money below stage median typically signals either harsher terms or a strategic discount; above stage median demands real metric backing.",
  "relatedKpiIds": [
    "fundraising.post_money_valuation",
    "fundraising.total_round_size",
    "fundraising.founder_dilution",
    "fundraising.convertible_outstanding"
  ]
}