Pre-Money and Post-Money - Business Valuation

The video tutorial explains the concepts of pre and post money valuations, which are used to determine a company's value before and after an investment. It covers methods to calculate pre money valuation, such as industry comparables and discounted cash flow. The tutorial also details how to calculate the number of shares an investor receives, considering fully diluted capitalization and price per share. Additionally, it discusses preferred shares and their conversion into common stock, ensuring investors receive the correct number of shares.

What is pre money valuation and how is it determined?

Explain the difference between pre money and post money valuation.

How do you calculate the price per share for an investor?

What factors should be considered when determining the number of shares an investor receives?

Why are pre and post money valuations important in investment transactions?